Tata Motors Board Approves Plan To Raise Rs 500 Crore Through NCD Issue
Tata Motors' board on October 25, 2019 had approved and authorised the raising of additional funds up to Rs 3,500 crore through external commercial borrowings.
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Automobile manufacturer Tata Motors said on Monday its authorised committee of the board has approved a plan to raise Rs 500 crore through issue of securities in two tranches of Rs 250 crore each.
The redemptions will be on December 30, 2026 and January 29, 2027. Tata Motors' board on October 25, 2019 had approved and authorised the raising of additional funds up to Rs 3,500 crore through external commercial borrowings, listed, unsecured, rated, non-convertible debentures (NCDs) or any other form of borrowing or in any combination.It had also approved raising of Rs 6,500 crore from Tata Sons through preferential issue.
The fund infusion by Tata Sons, the promoter of major operating companies of the Tata Group, into Tata Motors is aimed at helping the automaker whose domestic business has been hit by a slowdown that significantly impacted sales volumes, profitability and cash flows and increased the net debt to unsustainable levels.
(ANI)