Home > Auto > News > Tata Motors gets approval to raise 1,000 crore via NCDs

Tata Motors said on Tuesday a board-constituted committee has approved raising up to 1,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.

The committee approved the offer for subscription on a private placement basis up to 10,000 rated, listed, unsecured, redeemable NCDs of face value 10 lakh each at par aggregating up to 1,000 crore, the company said in regulatory filings at stock exchanges.

These will be issued in three tranches of 500 crore, 300 crore and 200 crore with redemptions due on September 30, 2022, November 28, 2022, and December 29, 2022, respectively, it added.

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The interest payable will be subject to discovery after open book bidding on the BSE platform.

The fund-raising plan is to improve liquidity which has taken a hit among all automakers due to the economic slowdown and Covid-19 lockdown.

Liquidity deficit has become a big problem for automakers, their dealers and suppliers during the countrywide lockdown as they have fixed costs like employee wages, debt obligations and depreciating assets like manufacturing equipment.

But revenues have frozen as buyers defer purchases. At the same time, auto supply chains are spread globally and re-building them will take weeks and months.

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.