Tata Motors said on Tuesday a board-constituted committee has approved raising up to Rs 1,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.
The committee approved the offer for subscription on a private placement basis up to 10,000 rated, listed, unsecured, redeemable NCDs of face value Rs 10 lakh each at par aggregating up to Rs 1,000 crore, the company said in regulatory filings at stock exchanges.
These will be issued in three tranches of Rs 500 crore, Rs 300 crore and Rs 200 crore with redemptions due on September 30, 2022, November 28, 2022, and December 29, 2022, respectively, it added.
The interest payable will be subject to discovery after open book bidding on the BSE platform.
The fund-raising plan is to improve liquidity which has taken a hit among all automakers due to the economic slowdown and COVID-10 lockdown.
Liquidity deficit has become a big problem for automakers, their dealers and suppliers during the countrywide lockdown as they have fixed costs like employee wages, debt obligations and depreciating assets like manufacturing equipment.
But revenues have frozen as buyers defer purchases. At the same time, auto supply chains are spread globally and re-building them will take weeks and months.
( With inputs from ANI )