Tata Motors completes ₹2,000 crore fundraise move after allotment of NCDs on private placement basis

Blue-chip auto company Tata Motors informed exchanges on Thursday, March 27, that its board approved the allotment of 2,00,000 NCDs amounting to ₹2,000 crore on a private placement basis.

“We wish to inform you that the Board constituted Committee has today approved allotment of 2,00,000 Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures in multiple series/tranches of face value ₹1,00,000/- each at par aggregating ₹2000 crore on private placement basis,” Tata Motors said in a filing today.

Details of Allottees

The Tata group company has allotted 50,000 NCDs to HDFC Bank in Tranche I, 10,000 NCDs to Reliance General Insurance Company and 60,000 NCDs to BNP Paribas as part of Tranche II.

Additionally, it has allotted NCDs to Care Health Insurance (2500 NCDs), HDFC Bank (52,500), Reliance General Insurance Company (5,000) and SBI Short Term Debt Fund (20,000) in Tranche III.

These NCDs are proposed to be listed on the NSE and assigned an AA+/Stable rating by Crisil.

Earlier this month, on March 19, the company's board had approved the issuance of NCDs in three tranches at a coupon rate of 7.65%.

Tata Motors Share Price Trend

Despite the fundraising update by the Sensex company, its shares witnessed a heavy selloff in today's trading session in the Indian stock market.

The slide in Tata Motors after US President Donald Trump on Thursday announced plans for 25% tariffs on all imported cars and auto parts. This is expected to particularly impact Tata Motors as the US is a top destination for Tata Motors-owned Jaguar Land Rover's (JLR) luxury cars. The 25% tariffs on cars and light trucks imported into the US will start on April 2.

This comes as a significant blow for the company as it has already been facing significant pressure following a slowdown in domestic sales.

The stock was among the top losers among the Sensex stocks. Tata Motors share price cracked as much as 6.5% to hit the day's low of ₹677.05 on the BSE. The large-cap stock finally settled the session at ₹668.60, down 5.56%.

Read all market-related news here

Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.