Tata Motors' QIP Raised to USD 750 Million for Clearing Dues
Qualified Institutional Placement is the latest tool to get ready cash by selling debentures and shares to the listed Qualified Institutional Buyer. Now Tata Motors has made an important declaration in a press brief that it has already raised the capital amounting to USD 750 million.
The company has decided to distribute shares among the listed companies for gathering fund. The proceeds collected from the sold debenture and equities will be spent to pay the debt.
According to experts, QIP has been launched by SEBI to check the constant flow of foreign investors. In past Indian companies had to sell debentures to overseas clients to raise capital overlooking domestic market.
Now with the advent of QUIP method, a domestic company in the country can collect funds using QIP fund raising device.
Finally, one of the spokespersons on behalf of Tata Motors told the reporters that the financial condition of the company will be more comfortable as these collected proceeds will be invested to sweep away the previous dues and outstanding balance.
The dilution rate is pegged at 6.5%. Right now company has managed 3500 crore rupees which will be rolled over to the previously deposited Rs 8,000 crore.
New Zealand News
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