Indian commercial vehicle (CV) market leader Tata Motors plans to raise close to €1 billion through equity — either a rights issue or qualified institutional placement (QIP) — as well as monetise its stake in Tata Capital, to help repay the €3.8 billion (₹ 38,000 crore) bridge loan it will use to buy Italy’s legacy CV player, Iveco group.

Exor ( OTCPK:EXXRF ), the investment company controlled by Italy’s Agnelli family and Iveco’s largest shareholder, has agreed to sell its 27% holding to Tata. Tata plans to make a public offer for the remaining shares, paving the way for Iveco to be delisted from the Milan exchange.