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Tata Motors to raise Rs 300 crore via NCDs

Tata Motors (TML), India's biggest automaker, will issue non-convertible debentures (NCDs) to raise Rs 300 crore, and a meeting of senior executives and directors will be held on Wednesday. The fund-raising is part of the company's efforts to raise Rs 4,400 crore via NCDs for tenures ranging from two to 10 years in one or more series.

"We wish to inform you that TML is desirous of issuing the first series of its rated, listed, unsecured redeemable NCDs aggregating to Rs 300 crore and in this regard is holding a meeting of its duly constituted committee of senior executive and directors on April 27, 2016," a statement by the Mumbai-based company said.

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

"It is proposed to issue NCDs on a private placement basis aggregating up to Rs 4,400 crore, in one or more series/tranches during the 12 months with an intention to substitute the short term liabilities/borrowings and for financing, part of the ongoing capital expenditure during the next 12 months as also for general corporate purposes," Tata Motors had said in its annual report.

In continuation of its efforts to strengthen the capital structure, the company intends to augment the 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 between two to 10 years.