The Indian markets opened flat today tracing flattish opening trades in SGX Nifty and most of the Asian markets After showing a lack of direction throughout much of the session, US stocks ended Thursday's trading session mostly lower. The weakness seen at the close of trading on Wall Street was partly due to profit taking, as some traders cashed in on the recent strength in the markets. Nonetheless, selling pressure remained relatively subdued, limiting the downside for the markets, partially due to the release of a report from the Labor Department showing that initial jobless claims unexpectedly fell to a new five-year low in the week ended May 4th. Although the European markets got off to a weak start on Thursday's trading session, markets pared their early losses and ended in positive territory after better than expected U.S. weekly jobless data and Bank of England maintaining its interest rate. Meanwhile, Indian shares fell on Thursday, as investors adopted a cautious stance following three days of successive gains. Investors are also awaiting consumer inflation and factory output data due on Friday as well as wholesale inflation numbers on Monday for clues to near-term market outlook.
TTMT raises SGD350mn through Singapore dollar bonds
Tata Motors, the country’s largest vehicle maker, has raised funds from the international market by issuing Singapore dollar bonds, to meet working capital requirements and capital expenditure. According to sources, the Mumbai-based company has raised S$350 million (Rs 1,545 crore) through a S$-denominated Regulation S bonds (Reg S) bond sale at an annual coupon rate of 4.25 per cent. This is the second fund raising activity by the company in less than five months. In January, its subsidiary, Jaguar Land Rover Automotive, had raised $500 mn (Rs 2,750 crore) through senior debt. Tata Motors would be the third Tata Group company to raise funds by issuing S$ bonds in 2013. Tata Communications raised S$250 mn (Rs 1,100 crore) in January and Tata Steel raised S$300 mn (Rs 1,300 crore) last month. TML Holdings Pte, Singapore, a subsidiary of Tata Motors, is involved in the fund raising. The issue will comprise Reg S for a five-year maturity tenure, say sources. When asked, Tata Motors declined to comment. From information disclosed by Tata Motors, by the end of the third quarter (December 31, 2012) the company had cash, bank balance and mutual funds holdings of £2.1 billion and undrawn committed credit facilities of £1 bn. On an average, Tata Motors invests Rs 2,500-3,000 crore every year towards capital expenditure, of which a major chunk is for new product development. However, this pales in comparison to investment planned by JLR, of £2.75 bn (Rs 22,825 crore) for the current financial year. Tata Motors reported its lowest net profit in three years in the third quarter of 2012-13. At the standalone level, the company recorded its first net loss in four years, hit by a sharp slowdown in demand for heavy trucks and passenger cars during the same quarter. Despite the negative demand outlook, Tata Motors had said it would go ahead with planned spending of Rs 2,500-3,000 crore on new product development and capital expenditure. On the commercial vehicle front, it is on course to launch several variants and new models, from micro trucks to heavy duty trucks and buses, in the coming months. CAPITAL FUNDING
* This is the second fund-raising activity by the company in less than five months
* In January, subsidiary Jaguar Land Rover Automotive had raised $500 mn (about Rs 2,750 cr) through senior debt
* Tata Motors would be the third Tata Group company to raise funds by issuing Singapore dollar bonds in 2013
* TML Holdings Pte, Singapore, a subsidiary of Tata Motors, is involved in the fund raising plan
* The issue would comprise Regulation S bonds , for a five-year maturity tenure. Source: Business Standard
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