Tata Motors, reckoned to the third biggest carmaker of the nation, possibly will launch a share sell to institutional investors worth five hundred and twenty five million dollars.

This move is being taken to cut down the firm's debts and for funding its plans on investments. According to industry sources the money raised will be used to develop products. .

In the month of August Society of Indian Automobile Manufacturers Association (SIAM) organized an event where group CEO of Tata Motors, Mr. Carl-Peter Foster announced that the firm has aim to raise a sum of one billion dollars. He stated that once the company makes the settlement it will be announced publicly.

Tata Motors has loans in the tune of four billion dollars in the market as of March end of 2010. It had brought down its debt to equity ratio to two decimal zero five from four in the month of March 2009.

In the same year through issuance of global depository shares as well as convertible notes the firm had raised a sum of seven hundred and fifty million dollars. The fund had been used to repay the company's entire debt it had incurred while acquiring Land Rover and Jaguar brands from Ford

Reports stating that company might be financing its auxiliaries and connected firms for raising funds so that it can curb its debts were heard earlier.

At present Tata Motors is keen to increase its passenger car selection. Fe had been reported that the firm has begun to work for producing a one ton plus diesel engine meant for Nano. the cheapest car of the world.

On top of that the company has further plans to come out worth one entry level hatchback which will narrow the gap between Indica and Nano. Dolphin is the codename given to the car.