The issue is the second tranche and has the base issue size of Rs 500 crore with an option to retain over-subscription of up to Rs 3,626 crore, aggregating to Rs 4,126 crore.
Tata Capital on Thursday announced that it plans to raise up to Rs 4,126 crore through a public issue of non-convertible debentures (NCDs) with a coupon rate of up to 8.85%. The issue is the second tranche and has the base issue size of Rs 500 crore with an option to retain over-subscription of up to Rs 3,626 crore, aggregating to Rs 4,126 crore.
The minimum application size is Rs 10,000 of face value of Rs 1,000 each across all the options ranging from three to 10 years. The subscription is scheduled to open on August 13 and will close on August 23, with an option of early closure or extension as decided by the board of directors of the company. The coupon rate on the secured options, which have tenures of three, five and eight years, would be 8.45%, 8.50% and 8.65%, respectively. The highest-yielding unsecured option with a tenure of 10 year has a coupon rate of 8.85%.
NCDs proposed to be issued under the second tranche have been rated ‘AAA’ with a stable outlook by Crisil and CARE Ratings.
At least 75% of the net proceeds of the public issue of NCDs will be used for the purpose of onward lending, financing and for repayment/prepayment of interest and principal of existing borrowings. A maximum of up to 25% will be used for general corporate purposes.
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 September last year.