Tata Motors Statement on Raising of Additional Long Term Resources

11th March, 2008 -- The Board of Directors of Tata Motors, at its meeting held today, has in principle approved, subject to other approvals as may be required, raising of additional long term resources up to Rs.4,000 crores by issue of appropriate securities in the foreign and/or domestic market in one or more tranches on terms to be decided by the Board/Committee of Directors in due course as also the consequent increase in the Authorised Capital of the Company.

The Company has major growth plans for expanding its position in the domestic and global markets in both the commercial vehicle and passenger vehicle business. This will be achieved by upgrading and enhancing the Company’s product portfolio, expanding manufacturing facilities in India and strategic acquisitions/alliances in India and abroad. Whilst this may require incurrence of expenditure for organic growth over the next 3-4 years, the acquisition opportunities will have to be financed upfront. The said funds are being raised to part-finance overall funding requirements to meet some of the strategic plans.

Source: Tata Motors Limited

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