Oct. 9 (Bloomberg) -- Tata Motors Ltd., India’s biggest truckmaker, raised $750 million selling securities, allowing it to finish paying off debt from the takeover of Jaguar Land Rover.

The size of the offering was increased 25 percent after the company met its initial fundraising target in less than an hour, according to a stock exchange statement today. The final sale comprised $375 million of global depository receipts and the same amount in convertible bonds.

Tata took advantage of demand for emerging-market stocks to help pare a 219 billion rupee ($4.7 billion) debt pile partly built up through its $2.5 billion purchase of Jaguar from Ford Motor Co. in 2008. The automaker has more than tripled this year in Mumbai trading, the best performance on the Sensitive Index, helped by the debut of the Nano, the world’s cheapest car.

“Investors have comfort from the Tata name,” said Surjit Singh Arora, a Mumbai-based analyst at Prabhudas Lilladher Pvt., who has an “accumulate” rating on the stock. “Tata Motors’ domestic business is also improving month-on-month and this trend should continue.”

Tata sold 29.9 million GDRs at $12.54 apiece and 4 percent convertible notes due in 2014, it said. The GDR price is a 1.5 percent discount to the closing price yesterday, it added. The GDRs and notes will be listed in Luxembourg.

Credit Suisse Group AG, Citigroup Inc. and JPMorgan Chase & Co. were managing the share sale.

Tata fell 7.4 percent, the most in more than three months, to 545.65 rupees at close of Mumbai trading. The Sensex index declined 1.2 percent.

Jaguar Loan

The automaker needs to repay the final $700 million of a $3 billion bridge loan it took to purchase Jaguar Land Rover, according to the statement. The company repaid the rest of the loan by selling debt in May and through a share sale last year.

Jaguar Land Rover also arranged a 175 million-pound ($280 million) loan from the State Bank of India, completing a 500 million pound financing this year, it said Oct. 7.

The introduction of the $2,500 Nano contributed to Tata’s vehicle sales, excluding Jaguar Land Rover, rising in the three months through September, the longest-winning streak in at least two years. Commercial-vehicle sales also rose 10 percent in September and 28 percent in August after banks cut interest rates and India’s economy expanded for the first time since 2007 in the three months ended June.

To contact the reporters on this story: Pooja Thakur in Mumbai at pthakur@bloomberg.net; Vipin V. Nair in Mumbai at vnair12@bloomberg.net

Last Updated: October 9, 2009 07:16 EDT