Tata Motors Shifts Gears: ₹2,000 Crore NCD Drive Powers Up Corporate Ambitions

Tata Motors Limited today announced that its Board of Directors will consider the matter of issue of non-convertible debentures (NCDs) of the size of up to ₹5 billion on private placement basis. The announcement is a part of the company's continuing efforts to shore up its balance sheet and improve its capital structure by accessing diversified sources of funds. The proposed NCDs will be rated, listed, unsecured, fixed-coupon and redeemable, providing investors with structured returns while allowing Tata Motors to access long-term funds without equity dilution.

 

The issue is likely to be made in more than one tranches, with a fixed coupon rate and fixed maturity period for each debenture. The issue proceeds are likely to be used for general corporate purposes, repayment of existing debt, and financing future growth opportunities. The action is being taken in the background of a tough market situation, with Tata Motors' shares having witnessed recent volatility on account of global economic slowdown and trade policy uncertainty. The company's forward-looking capital management strategy is a reflection of its desire to preserve financial flexibility and to support its operating objectives.

 

Source: MarketScreener, Moneycontrol, Angel One