Full Throttle Finance: Tata Motors Approves ₹500 Crore NCDs to Fuel the Road Ahead

Tata Motors Ltd has approved the issue of a ₹5 billion (₹500 crore) Non-Convertible Debenture (NCD) as a measure to raise its funding by private placement. Board-approved issue will comprise a maximum of 50,000 NCDs of face value of ₹1 lakh each in two tranches-Tranche I of ₹300 crore and Tranche II of ₹200 crore. Both tranches carry a fixed coupon rate of 7.08% per annum and are due in 2028.

 

The NCDs, rated 'CRISIL AA+/Stable', will be listed on the National Stock Exchange (NSE)'s Wholesale Debt Market Segment offering stable returns to the eligible investors. The allotment of both the tranches is on May 13, 2025, with maturity dates of May 11 and May 12, 2028, respectively.

 

This is one of the ongoing attempts by Tata Motors to structure its capital to better and finance its future growth initiatives. The news came out after market hours, with Tata Motors' shares ending at ₹652 on the NSE, up 1.2% for the day.

 

Source: The Economic Times