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Tata Motors committee approves to raise Rs 300 cr via NCDs

Tata Motors logos are pictured outside their flagship showroom in Mumbai

Tata Motors logos are pictured outside their flagship showroom in Mumbai

 

  Tata Motors said on Wednesday that an authorised committee of the company has approved to raise upto Rs 300 crore via issue of non-convertible debentures (NCDs) to bankroll its expansion plans.

A meeting of the duly authorised committee today approved issuance of privately placed 3,000 non-convertible debentures (NCDs) of face value Rs 10,00,000 each, at par, aggregating upto Rs 300 crore, Tata Motors said in a regulatory filing.

The fund-raising is part of the company's plan to mop-up Rs 4,400 crore through issuance of NCDs in one or more tranches on a private placement basis.

In April, in first tranche, the company had mopped up Rs 300 crore through the same route.

In May last year, Tata Motors had proposed to raise Rs 4,400 crore from NCDs to finance its expansion.

In continuation of its efforts to strengthen the capital structure, the company intends to augment long-term resources by substituting part of the short-term liabilities with medium- to long-term resources, it had said.

The company intends to raise NCDs for a tenure ranging 2-10 years.

The company's stock ended 1.99% higher at Rs 397 on BSE.