Tata Motors to raise ₹500 crore via NCDs at 7.08% coupon in two tranches
Published on 02/05/2025 08:09 PM
Tata Motors to raise ₹500 crore via NCDs at 7.08% coupon in two tranchesBoth tranches are scheduled for allotment on May 13. Shares of Tata Motors Ltd ended at ₹651.85, up by ₹7.70, or 1.20%, on the BSE.By Jomy Jos Pullokaran May 2, 2025, 8:09:04 PM IST (Published)2 Min ReadAuto major Tata Motors Ltd on Friday (May 2) announced that its board committee has approved the issuance of non-convertible debentures (NCDs) worth up to ₹500 crore through private placement. The NCDs will carry a fixed coupon rate of 7.08% per annum and will be issued in two tranches.
Under tranche I, the company will issue up to 30,000 NCDs of ₹1,00,000 each, aggregating to ₹300 crore. Tranche II will comprise up to 20,000 NCDs of ₹1,00,000 each, totalling ₹200 crore. Both tranches are scheduled for allotment on May 13, 2025.
The tranche I NCDs will mature on May 11, 2028, while tranche II will mature on May 12, 2028. Interest will be paid annually, and the principal will be repaid in a single bullet payment at maturity. The NCDs will be unsecured, listed, rated, and redeemable instruments, and are proposed to be listed on the wholesale debt market segment of the NSE.
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Tata Motors reported a 22.5% year-on-year (YoY) decline in net profit at ₹5,451 crore for the third quarter that ended on December 31, 2024, over ₹7,025 crore in Q3FY24.
The company's revenue increased 1.8% to ₹1.13 lakh crore against ₹1.11 lakh crore a year ago. The CNBC-TV18 poll had predicted revenue of ₹1.16 lakh crore for the quarter under review.
At the operating level, EBITDA fell 14.7% YoY to ₹13,081 crore, missing the CNBC-TV18 poll estimate of ₹15,980 crore.
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The Q3 EBITDA margin contracted to 11.5% from 13.9% last year. The CNBC-TV18 poll had predicted a margin of 13.7%.
Shares of Tata Motors Ltd ended at ₹651.85, up by ₹7.70, or 1.20%, on the BSE.Continue Reading(Edited by : Shoma Bhattacharjee)Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!Tagsshare market todayTata Motors