TATA Capital NCD issue to open tomorrow, offers up to 8.85% interest; check key details

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Published: August 12, 2019 4:07:55 PM

The public issue of non-convertible debentures (NCDs) of TATA Capital which aims to raise up to Rs 4,126 crore will open on August 13.

Good news! 11 banks have reduced their MCLR after rbi repo rate cut The lender issued NCDs with a base issue size of Rs 2,000 crore in tranche I, which got over-subscribed to Rs 3,373 crore, in September last year. Image: Reuters

The public issue of non-convertible debentures (NCDs) of TATA Capital, which aims to raise up to Rs 4,126 crore, will open on August 13. The issue with a coupon rate of up to 8.85 per cent is the second tranche and comes with a base issue size of Rs 500 crore with an option to retain over-subscription of up to Rs 3,626 crore, adding up to Rs 4,126 crore. The issue closes August 23, 2019.  The interest pay-out is on annual basis for all the options. The coupon rate on the secured options, which have tenures of three, five and eight years, would be 8.45 per cent, 8.50 per cent and 8.65 per cent, respectively. The highest-yielding unsecured option with a tenure of 10 year has a coupon rate of 8.85 per cent. NCDs proposed to be issued under the second tranche have been rated ‘AAA’ with a stable outlook by CRISIL and CARE Ratings.

The minimum application size is of Rs 10,000 collectively across all options ranging from 3 to 10 years. The allotment is on a first come first serve basis.

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“Tata Capital Financial Services is well-diversified with assets across Retail, SME & Commercial Finance. It helps us to cater to a wide spectrum of customers. Our strong parentage, triple AAA ratings and commitment to transparency position us well in the industry,” Rajiv Sabharwal, MD and CEO, Tata Capital Limited, said.

The NCDs will be listed on the BSE and the National Stock Exchange. The lead managers to the issue are Edelweiss Financial Services, A K Capital Services and Axis Bank. The lender issued NCDs with a base issue size of Rs 2,000 crore in tranche I, which got over-subscribed to Rs 3,373 crore, in the month of September last year.

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