Tata Motors to raise Rs 500 crore via NCDs in two tranches

The company said its total commercial vehicle (CV) sales last month were at 27,221 units from 29,538 units in April 2024, down 8 per cent.

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26 Aug, 2025 12:21

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Auto major Tata Motors Ltd on Friday announced that its board has approved the issuance of non-convertible debentures (NCDs) worth up to Rs 500 crore through private placement. The NCDs will carry a fixed coupon rate of 7.08% per annum and will be issued in two tranches.

In a regulatory filing  Tata Motors said, "We hereby inform you that the Committee duly constituted by the Board of Directors of Tata Motors Limited at its Meeting held today, i.e., Friday, May 2, 2025 at 6:15 p.m. to 6:30 p.m. has, inter alia, approved the issuance of Non-Convertible Debentures (“NCDs”) aggregating upto Rs  500 crore.

Under tranche I, the company will issue up to 30,000 NCDs of Rs 1,00,000 each, aggregating to Rs 300 crore. Tranche II will comprise up to 20,000 NCDs of Rs 1,00,000 each, totalling Rs200 crore. Both tranches are scheduled for allotment on May 13, 2025.

The tranche I NCDs will mature on May 11, 2028, while tranche II will mature on May 12, 2028. Interest will be paid annually, and the principal will be repaid in a single bullet payment at maturity. The NCDs will be unsecured, listed, rated, and redeemable instruments, and are proposed to be listed on the wholesale debt market segment of the NSE.

Tata Motors Ltd on Thursday reported a 6.1 per cent decline in overall sales to 72,753 units in April 2025. The company posted the total sales at 77,521 units during April 2024.

Total domestic sales were down 7 per cent to 70,963 units last month as compared to 76,399 units in April 2024, Tata Motors said in a regulatory filing. Total passenger vehicle (PV) sales, including EVs, were down 5 per cent at 45,532 units over 47,983 units in the year-ago period, it added.

Sales of PVs, including EVs, in the domestic market were down 6 per cent at 45,199 units against 47,883 units in the corresponding month last year. The company said its total commercial vehicle (CV) sales last month were at 27,221 units from 29,538 units in April 2024, down 8 per cent.

*With Agency Inputs