Tata Motors officials, directors to meet on 27 April over NCDs issuance

Mumbai: Tata Motors Ltd in a notification to the stock exchanges said on 23 April that company’s senior executives and directors will meet on 27 April to consider issuance of rated, listed, unsecured, redeemable, non convertible debentures aggregating up to Rs.300 crore.

It’s part of a plan to issue secured, unsecured non convertible debentures of up to Rs.4,400 crores for the tenure in the range of 2 to 10 years.

While company’s board approved the issuance in May 2015, revalidated it in November 2015 and March 2016, it’s only now that Tata Motors intends to go ahead with the issuance in one or more series, the company said in a statement.

In continuation of its efforts to strengthen its capital structure, the company intends to augment the long-term resources by substituting part of the short-term liabilities with medium- to long-term resources,” it said in a notification in July.

NCDs offer higher interest rates than convertible debentures as they cannot be converted into equity. The borrowings of the company as on 31 March 2015 aggregated to about Rs.21,134.30 crore, of which outstanding NCDs added up to Rs.6,600 crore.

Tata Motors