Tata Motors To Raise Rs 500 Crore Via NCDs At 7.08% Coupon Rate

The proposed date of allotment for both tranches is May 13, 2025. The proposed date of maturity is May 11, 2028 and May 12, 2028, respectively.

A non-convertible debenture is a fixed-income instrument that provides structured returns to investors. As NCDs are unsecured and not backed by assets, the market participants evaluate the issuing company's creditworthy and debt-servicing capacity before allotment.

This is the second time in two months that Tata Motors has chosen to raise debt.

The company had raised Rs 2,000 crore on March 27 by allotting 2 lakh NCDs to HDFC Bank Ltd., Reliance General Insurance Co. and SBI Short Term Debt Fund and others in multiple tranches. These were issued at a coupon rate of 7.65%.

It is worth mentioning that Tata Motors' India business turned net debt-free in FY24, as did its UK-based subsidiary Jaguar Land Rover in FY25. The firm is now on course for a demerger later this year.

Shares of Tata Motors closed 1.2% higher at Rs 651.85 apiece on the BSE, compared to a 0.32% advance in the benchmark Sensex.