Tata Motors to float ₹500 Crore NCDs at 7.08% coupon rate

5 May 2025 , 10:57 AM

Tata Motors Limited announced that its board committee has nodded to an issue of non-convertible debentures (NCDs) worth up to ₹500 Crore. The issue is to take place via private placement. The NCDs shall be issued at a fixed coupon interest rate of 7.08% per annum and shall be issued in two tranches.

Under tranche I, the company plans to float 30,000 NCDs of ₹1,00,000 each. This shall sum up to ₹300 Crore. The company informed, under tranche II, it plans to issue 20,000 NCDs of ₹1,00,000 each. The total value of the second tranche will be ₹200 Crore. The company has planned the allotment of both tranches on May 13, 2025.

As per the company, tranche I NCDs shall be maturing on May 11, 2028. The second tranche will mature on May 12, 2028. The company said it will pay the interest annually, and shall make the repayment in bullet payment at maturity.

The NCDs will be listed, rated, unsecured, and redeemable instruments, proposed to be listed on the wholesale debt market segment of the NSE.

Tata Motors said that its net profit for the quarter ended March 2025, registered a decline of 22.5% on a year-on-year basis. The auto major reported a net profit of ₹5,451 Crore as compared to ₹7,025 Crore in Q4FY24.

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