Date:28/06/2005 URL: http://www.thehindubusinessline.com/2005/06/28/stories/2005062801860300.htm

Back Fiat raises stake in Indian arm

Our Bureau

Mumbai , June 27

FIAT India Pvt Ltd on Monday said Fiat Auto SpA had increased its stake in the company from 19.44 per cent to 44.61 per cent through an investment of over Rs 200 crore.

According to a statement, after the infusion, Fiat India Pvt Ltd will be fully capitalised with Fiat Auto and Fiat India Automobiles Pvt Ltd together holding a 99.83 per cent stake, while the shareholding of Premier Automobiles Ltd (PAL) will decline to 0.17 per cent.

"The infusion of funds represents for Fiat India free cash flows needed for future investments to repay debt and restructure its dealer network, thereby sustaining its current operations," the statement said.