New Delhi: Auto major Tata Motors has proposed to raise Rs 4,400 crore from Non-Convertible Debentures (NCDs) during the current fiscal to meet its expansion plan.
"It is proposed to issue NCDs on a private placement basis aggregating up to Rs 4,400 crore, in one or more series/tranches during the 12 months with an intention to substitute the short term liabilities/borrowings and for financing, part of the ongoing capital expenditure during the next 12 months as also for general corporate purposes," Tata Motors said in its annual report.
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.
The company intends to raise NCDs for a tenors ranging between 2 to 10 years and expects the coupon rate of NCDs to be lower than the SBI Base rate currently at 9.70 percent plus 0.5 percent, considering the current credit rating, it said.
