India's second-biggest commercial vehicle maker Ashok Leyland plans to tap foreign markets to raise upto $100 million, a top company official said on Wednesday.

"Our board will take a decision on February 28 to either go for a foreign currency convertible bond or global depository receipts to raise $100 million which can be partly utilised for servicing Rs 260 crore (Rs 2.60 billion) debt and capacity expansion," its managing director R Seshasayee told a news conference in New Delhi.

Asked about the proposed stock split, Seshasayee said, "We are buoyant over the medium term outlook of the company and we thought of being more investor-friendly by splitting the stock."

The company proposes to subdivide the equity shares from the present face value of Rs 10 each to a lower face value.

The proposal needs to be approved by shareholders and will be taken up in an extra-ordinary general meeting to be held on February 28.

To a query on raising upto $100 million from overseas markets to fund debt repayment and capacity expansion, he said, "Tapping foreign markets make sense for us as it will be cheaper."