Tata Capital Fin Services to raise upto Rs 7,000 crore through NCDs

Debt market sources said the funds are likely to be raised through non-convertible bonds (NCDs) in one or more tranches

Tata Capital Financial Services eyes to double loan book to Rs 500 billion

Abhijit Lele Mumbai

Listen to This Article

Tata Capital Financial Services Ltd (TCFSL) plans to raise up to Rs 7,000 crore via bonds to support growth even as efforts for its merger, along with that of Tata Cleantech Capital, with parent Tata Capital Ltd (TCL) are underway in the current financial year.

TCFSL, which is into retail, SME, and corporate funding posted 32.03 per cent year-on-year growth in assets to Rs 78,499 crore at end of March 2023. Its capital adequacy ratio was 17.3 per cent with tier-1 level of 13 per cent. Its parent TCL had infused funds of Rs 1,150 crore in the form of equity shares into TCFSL during the second half of the 2023 fiscal year.

Debt market sources said funds were likely to be raised through non-convertible bonds in one or more tranches. Separately, the company has also lined up reissuance of bonds having three-year maturity for next week. The base issue is Rs 200 crore with a green shoe option of Rs 800 crore.

CRISIL Ratings has assigned its “AAA/Stable” rating for proposed NCDs of Rs 7,000 crore. The assessment for rating is done on consolidated basis with Tata Capital at parent and subsidiaries TCFSL, Tata Capital Housing Finance, Tata Cleantech Capital Limited, Tata Securities and Tata Capital, Singapore.

CRISIL said the merger is a part of the Tata group’s broader plans to meet the revised regulatory framework for TCFSL, which has been identified as an upper-layer NBFC, pursuant to the RBI’s scale-based regulations. The merger would further enable simplified organisational structure and improve operational and management efficiencies, it added.

Also Read

Tata Capital Financial Services, Tata Cleantech to merge with Tata Capital

Mercedes-Benz Energy signs deal with Lohum to recycle EV batteries

One year since Tatas took over Air India, here's how the journey has been

Tata Technologies submits IPO papers with Sebi to raise capital via OFS

Tata Electronic plans to bolster presence in electronics, semiconductor biz

JSW Steel aims to secure coking coal supply, eyes assets in India & abroad

Tesla's U-turn on India in search for new EV manufacturing destination sees 4-fold jump in monthly traffic from pre-Covid level: CEO

UK-based BenevolentAI to cut about 180 jobs as part of restructuring plan

Hi-Tech Pipes's net profit grows 42% to Rs 16 crore in March 2023 quarter

First Published: May 28 2023 | 8:14 PM IST

Explore News