New Delhi: Tata Motors plans to raise Rs 300 crore through issuance of second series of non-convertible debentures (NCDs) to bankroll its expansion plan.
The fund-raising is 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.
“The company is desirous of issuing the second series of its rated, listed, unsecured, redeemable NCDs aggregating Rs 300 crore and in this regard is holding a meeting of its duly-constituted committee of the board on May 25, 2016,” Tata Motors said in a regulatory filing today.
In April, in first tranche, the company had mopped up Rs 300 crore through the same route.
In May last year, Tata Motors had proposed to raise Rs 4,400 crore from NCDs to finance its expansion.
“It is proposed to issue NCDs on a private placement basis aggregating up to Rs 4,400 crore, in one or more series/tranches during the 12 months, with an intention to substitute short-term liabilities/borrowings and for financing part of the ongoing capital expenditure during the next 12 months as also for general corporate purposes,” Tata Motors had said in its annual report.
In continuation of its efforts to strengthen the capital structure, the company intends to augment long-term resources by substituting part of the short-term liabilities with medium- to long-term resources, it had said.
The company intends to raise NCDs for a tenure ranging 2-10 years.