Money & Banking

Tata Capital plans to raise up to ₹2,000 crore via NCDs

Our Bureau Mumbai | Updated on January 06, 2020 Published on January 06, 2020

Tata Capital Housing Finance Ltd (TCHFL) plans to raise up to ₹2,000 crore via maiden Non-Convertible Debenture (NCD) ‘Tranche 1’ issue, which will open on January 7 and close on January 17.

The minimum subscription size of the NCDs being issued by TCHFL, which is the wholly-owned subsidiary of Tata Capital Ltd (TCL), is ₹10,000 (10 NCDs of ₹1,000 face value each) collectively across all six options – Series I to V NCDs are secured and Series VI NCD is unsecured and subordinated – and in multiples of ₹1,000 (one NCD) thereafter, according to a company statement.

Under Series-I (36 months), interest would be paid on an annual basis at 8 per cent to Category I (institutional investors) and Category II (non-institutional investors) and at 8.10 per cent to Category III (high net-worth individual investors) and Category IV (retail individual investors).

Under Series-II (60 months), interest would be paid on a monthly basis at 7.92 per cent to Category I and Category II and at 8.01 per cent (monthly) to Category III and Category IV. Under Series-III (60 months), interest would be paid on an annual basis at 8.20 per cent to Category I and Category II and at 8.30 per cent to Category III and Category IV.

Under Series-IV (96 months), interest would be paid on a monthly basis at 8.01 per cent to Category I and Category II and at 8.10 per cent (monthly) to Category III and Category IV. Under Series-V (96 months), interest would be paid on an annual basis at 8.30 per cent to Category I and Category II and at 8.40 per cent to Category III and Category IV.

Under Series-VI (120 months), interest would be paid on an annual basis at 8.55 per cent to Category I and Category II and at 8.70 per cent to Category III and Category IV.

“This is the first time in the housing finance company we are doing a public NCD issuance. Last year, we did an issuance in our NBFC (TCL),” said Rajiv Sabharwal, MD and CEO, TCL.

The statement said at least 75 per cent of the net proceeds of the public issue of NCDs will be used for the purpose of onward lending, financing, and for repayment/ pre-payment of interest and principal of existing borrowings of the company. A maximum of up to 25 per cent will be used for general corporate purposes, it added.

Published on January 06, 2020
  1. Comments will be moderated by The Hindu Business Line editorial team.
  2. Comments that are abusive, personal, incendiary or irrelevant cannot be published.
  3. Please write complete sentences. Do not type comments in all capital letters, or in all lower case letters, or using abbreviated text. (example: u cannot substitute for you, d is not 'the', n is not 'and').
  4. We may remove hyperlinks within comments.
  5. Please use a genuine email ID and provide your name, to avoid rejection.