Companies

Tata Motors to consider ₹1,000-crore NCD offer

Our Bureau Mumbai | Updated on May 15, 2020

A Tata Motors plant at Sanand   -  REUTERS

Tata Motors on Friday said it is considering an offer of rated, listed, secured, redeemable, non-convertible debentures aggregating ₹1,000 crore. In this regard, it is holding a meeting of its board-constituted committee on May 20.

The issuance is pursuant to the approval of the board of directors’ resolution passed at its meeting held on March 27, the company said in a regulatory filing.

This intimation is being issued pursuant to Regulation 29 (1) and (2) as well as Regulation 63, read along with Regulation 50 (2) and (3) of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, it said.

Earlier issue withdrawn

This comes close on the heels of Tata Motors saying on May 7 it had decided to withdraw its planned issue of NCDs on a private placement basis to raise up to ₹1,000 crore, in view of the higher cost expectations from market participants due to the tight money market conditions. The company had said then in a regulatory meeting that it continued to have sufficient liquidity and would consider an NCD issue at an appropriate time and under normalised market conditions with necessary approvals.

On May 5, Tata Motors had said that a board-constituted committee had approved an issue of 10,000 rated, listed, unsecured, redeemable NCDs of face value ₹10,00,000 each, at par, across three tranches.

Sector hit hard

The automobile industry had reported zero domestic sales and limited exports in April for the first time in history, as factories remained closed amid the lockdown.

Auto industry representatives, in a joint submission by the Society of Indian Automobile Manufacturers (SIAM), Automotive Component Manufacturers Association of India (ACMA) and the Federation of Automobile Dealers Associations (FADA), had also written to the Ministry of Home Affairs to allow the sector to resume operations.

The industry had already been facing a severe downturn for over 15 months and, with the lockdown, it was losing revenue of ₹2,300 crore per day, they said.

Published on May 15, 2020

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

This article is closed for comments.
Please Email the Editor