Tata Capital to raise Rs 20K crore via NCDs to boost core lending biz
Tata Capital Limited’s (TCL’s) board has greenlit a fundraising exercise of Rs 20,000 crore through non-convertible debentures (NCDs). This capital will be channelled into the company’s core lending business and is separate from the Rs 8,000 crore fundraising plan of its home finance subsidiary, Tata Capital Housing Finance.
Tata Capital, a subsidiary of Tata Sons Private Limited, the holding company of the Tata group, currently encompasses Tata Capital Housing Finance, Tata Securities, and Tata Capital Pte Singapore and its subsidiaries. The debentures will be issued on a private placement basis once Tata Sons approves the fundraising plan, with the option for Tata Capital to raise the funds in one or more tranches.
The group plans to list Tata Capital Financial Services, the holding company of the financial services business, by 2025. This move aligns with the Reserve Bank of India’s (RBI’s) guidelines to list upper-layer NBFCs. Both Tata Capital Financial Services and its parent firm, Tata Sons Private Limited, were identified as NBFC “upper layer” by the RBI in September 2023. This designation necessitates a stringent disciplinary structure and mandatory listing within three years for both companies.
