All proceeds will be used towards refinancing a part of the principal amount of the borrower's notes as permitted under the ECB directions, the company said.
Shares of Tata Motors gained over a percent in the morning trade as investors bet on the firms’ fundraising plans.
The stock has touched an intraday high of Rs 310.00 and an intraday low of Rs 302.60.
The company on Thursday said that it proposed to raise funds of about USD 250-500 million through external commercial borrowing (ECB).
All proceeds will be used towards refinancing a part of the principal amount of the borrower's notes as permitted under the ECB directions.
Meanwhile, Jaguar Land Rover (JLR) reported a rise of 6.1 percent in May sales to 48281 units driven by the introduction of new models including the Range Rover Velar, the Jaguar E-PACE and the new Land Rover Discovery.
While Land Rover retail sales rose 6 percent to 33,774 units during May while Jaguar sales increased by 6.6 percent to 14,507 units.
During the January-May period, JLR sales increased 1.6 percent to 188,443 units, a statement from Tata Motors said.
The stock has lost around 7 percent in the past month, while in the past three days it rose over 8 percent. At 09:30 hrs Tata Motors was quoting at Rs 309.50, up Rs 4.20, or 1.38 percent, on the BSE.