India's Tata Motors (TAMO.BO) raised $750 million in an institutional share sale, a source with direct knowledge of the matter said, after lifting the size of the offering on strong demand.
The vehicle maker, which owns the luxury Jaguar and Land Rover brands and also makes the world's cheapest car, the Nano, had initially planned to raise $525 million by issuing $325 million shares with differential voting rights and $200 million worth of ordinary shares.
The company said in a statement earlier on Monday that it was increasing the size of the offering of shares with differential voting rights to $550 million.
Later on Monday, Tata Motors spokesman Debasis Ray said the issue had yet to close and declined further comment.
The overall offer generated orders for roughly $1.8 billion, the source said.
The company launched the share sale late on Friday, with the aim of using proceeds to reduce debt and grow its business, sources said, taking advantage of an Indian share market that reached a new 33-month peak on Monday.
Shares with differential voting rights are normally issued to protect the stake of founders in a company. Such shares allow investors to get higher dividends, but in return they have to surrender their voting rights.
Tata Motors, part of the diversified Tata Group conglomerate, was selling the shares with differential voting rights at 764 rupees each and the ordinary shares at 1,074 rupees each, the source said, a discount of 4 percent to the stock's Friday close.
Tata Motors' ordinary shares rose 1.85 percent on Monday to close at 1139.6 rupees.
Credit Suisse (CSGN.VX) (CS.N) and Citibank (C.N) were the lead managers for the issue.
