Tata Motors has approved the issuance of Non-Convertible Debentures (NCDs) amounting up to ₹2,000 crore on a private placement basis. The approval was given in a board committee meeting convened on March 19, 2025, after previous approvals were given in March and May 2024.
Major points:
1.NCDs to be rated, listed, unsecured, and redeemable
2.Monies to be applied for general business purposes, such as R&D, capacity enhancement, and working capital
3.Arrives in difficult market conditions, with Tata Motors' share decreasing 32.64% during the last twelve months
This action is intended to shore up Tata Motors' balance sheet as it faces a competitive auto market. The CFO of the company recently reassured analysts that Jaguar Land Rover (JLR) will achieve its Q4 EBIT margin target of 10% and be net debt-free by the end of the fiscal year.
In spite of recent share price struggles, brokerage house Nomura has a "buy" recommendation on Tata Motors with a target price of ₹861.
Sources: Economic Times, CNBC TV18, March 19, 2025