Tata Motors scraps plan to raise Rs 1,000 crore through NCDs
On April 28, Tata Motors had said it would be issuing non-convertible debentures worth Rs 1,000 crore.
Mumbai: Auto major Tata Motors said on Thursday it has decided to withdraw the issue for private placement of unsecured non-convertible debentures (NCDs) which it had announced last month.
“…the company has decided to withdraw the issue for private placement of unsecured NCDs in view of the higher cost expectations from the market participants due to the tight money market conditions,” Tata Motors said in an exchange filing.
“The company continues to have sufficient liquidity and would consider issuance of NCDs at an appropriate time and under normalized market conditions with necessary approvals,” it added.
On April 28, Tata Motors had said it would be issuing NCDs worth Rs 1,000 crore, as it attempted to take the debt route to raise liquidity when revenue has frozen due to nationwide movement restrictions.
The company had said the NCDs would be issued in three tranches and a special committee of the company’s board is scheduled to convene on May 5.
Liquidity deficit is the biggest problem being faced by automakers, their dealers, and suppliers during the lockdown since they still have fixed costs like employee wages, debt obligations and depreciating assets like manufacturing equipment.
“…the company has decided to withdraw the issue for private placement of unsecured NCDs in view of the higher cost expectations from the market participants due to the tight money market conditions,” Tata Motors said in an exchange filing.
“The company continues to have sufficient liquidity and would consider issuance of NCDs at an appropriate time and under normalized market conditions with necessary approvals,” it added.
On April 28, Tata Motors had said it would be issuing NCDs worth Rs 1,000 crore, as it attempted to take the debt route to raise liquidity when revenue has frozen due to nationwide movement restrictions.
The company had said the NCDs would be issued in three tranches and a special committee of the company’s board is scheduled to convene on May 5.
Liquidity deficit is the biggest problem being faced by automakers, their dealers, and suppliers during the lockdown since they still have fixed costs like employee wages, debt obligations and depreciating assets like manufacturing equipment.