Honda Siel is to raise Rs.2000 Crore for expansion

Honda Siel Car India is understood to be planning to raise Rs 2,000 crore to fund expansion at its Tapukara plant in Rajasthan amid speculations of tiff between joint venture partners -- Honda Motor Co and Siel Ltd.

Sources in the know of development said with the Indian partner Siel not bringing in any fresh equity capital, its stake in Honda Siel Cars India (HSCI) may come down further.

The company had planned to raise a total of around Rs 3,200 crore, of which Rs 1,200 crore has already been mopped up through a rights issue.

However, it could not be ascertained how HSCI plans to raise the rest of the funds, but it is understood to be keeping its options open between another rights issue and loan from banks.