Tata Motors plans to raise ₹2,000 Crore via NCDs

17 Mar 2025 , 09:04 AM

Tata Motors Limited announced that its boards of directors will meet on Wednesday, March 19, to consider a fundraising proposal up to ₹2,000 Crore.

The company plans to raise funds through issue of rated, listed, unsecured, redeemable, and Non-Convertible Debentures on a private placement basis.

The company’s board of directors granted approval to the fundraising plans in March and May last year. 

The company also said that the funds raised shall be utilized for general corporate purposes, including but not restricted to research and development, expansion of capacity, and working capital requirements.

The meeting on March 19th is expected to provide additional details on the terms and conditions of the NCD issue. It also includes decisions on coupon rate and maturity period.

Tata Motors’ CFO reassured analysts in its meeting that Jaguar Land Rover (JLR) will meet its fourth quarter EBIT margin guidance of 10%. He also stated that the company plans to turn net debt free by the end of the financial year.

The auto major announced its results for the quarter ended December 2024 in January 2025. The company reported a decline of 22% on a year-on-year basis to ₹5,451 Crore. However, the company posted a growth of 3% year-on-year in its revenue to ₹1.13 Lakh Crore.

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