Tata Motors to issue NCDs to raise Rs 300 crore

Tata Motors, India's biggest automobile company, said on Wednesday that it will issue non-convertible debentures to raise Rs 300 crore.

The company will issue privately placed 3000 rated, listed, unsecured, redeemable 8.25% coupon NCDs of face value Rs 10,00,000 each at par aggregating upto Rs 300 crore.

The tenure of the NCDs is 1006 days effective today while date of maturity/redemption is January 28, 2019.

The security will be listed on both BSE and NSE, the company said.

The fund-raising is a 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.

Tata Motors had proposed to raise Rs 4,400 crore from NCDs in May last year.

The company had stated that in continuation of its efforts to strengthen the capital structure, it intended to augment the long-term resources by substituting part of the short-term liabilities with medium to long term resources.

Tata Motors stock was trading at Rs 415.85, down 0.82%, on BSE.

(With agency inputs)