Tata Capital Financial Services, non-banking financial company, plans to raise Rs 7,500 crore through issue of non-convertible debentures. The issue which carries an interest of 8.70 per cent to 9.10 per cent will open for subscription between September 10 and 21.

Tata Capital will issue secured, redeemable, non-convertible debentures with face value of Rs 1,000 each up to Rs 6000 crore and unsecured, subordinated, redeemable, NCD of Rs 1,000 face value each up to Rs 1500 crore aggregating to Rs 7500ag crore.

The base issue size of the issue is Rs 2000 crore with an option to retain oversubscription up to Rs 7500 crore.

Rating agencies Crisil and Care have assigned ‘highest degree of safety’ rating to the issue.

Rajiv Sabharwal, Non – Executive Director, Tata Capital Financial Services, said the company is well placed to take advantage of the growth opportunities in the NBFC space by leveraging on its AAA rating, wide distribution network and strong technology platform.

Category IV Investors (Retail Individual Investors) are defined as Resident Indian Individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10,00,000 across all options of NCDs in the Tranche I Issue.

At least 75 per cent of the net proceeds of the NCD will be used for onward lending, financing and repayment of interest and principal of existing borrowings of company. A maximum of up to 25 per cent will be used for general corporate purposes.

The NCD will be listed on BSE and NSE.

Related Topics
comment COMMENT NOW