Wednesday, April 30, 2025
By Kamal Swami
Tata Motors To Raise Funds Through NCD Worth Rs 500 Crore
The domestic automotive group Tata Motors Limited has announced that a meeting of a designated committee of its Board of Directors will be held on Friday, May 2, 2025, to consider and approve the issuance of Non-Convertible Debentures (NCDs) worth up to Rs 500 crore. The proposed issuance will be carried out on a private placement basis. In a regulatory filed in the stock exchange, the company stated that the NCDs will be rated, listed, unsecured, and redeemable, offering Tata Motors a flexible and cost-effective way to raise funds. The company has taken this step according to its strategy of raising funds through multiple platforms.
“A meeting of the duly constituted Committee of the Board of Directors of the Company is scheduled to be held on Friday, May 02, 2025, inter alia, to consider and approve the issuance of Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures on a private placement basis aggregating up to Rs 500 crore,” the filing said.
The final approval of the issuance will depend on the committee’s decision and existing market conditions. If the decision receives approval from the constituted committee, then the NCDs will be listed on a recognized stock exchange to enhance liquidity and attract institutional investors.
Since its inception, the homegrown company has raised its funds through NCDs as a non-dilutive and cost-efficient financing tool. This type of funding has benefitted both its commercial and passenger vehicle businesses. The recent announcement to raise the funds through NCD is in line with the company’s broader effort to strengthen its balance sheet and increase its initiatives to boost the business.
Recently, the carmaker has posted strong financial results, with a consolidated net profit of Rs 5,408 crore for the quarter ended December 2024. All this was possible due to the increasing demand for its products in the domestic market and improved operational efficiencies, along with a turnaround in its UK-based luxury vehicle unit, Jaguar Land Rover (JLR). Moving ahead, Tata Motors is focusing on expanding its electric vehicle portfolio, with several models planned under its Tata. ev brand in FY26.
