Tata Capital in talks with lenders to raise Rs 10,000 crore via debt
Tata Capital, a subsidiary of Tata Sons, is in talks with lenders to raise Rs 10,000 crore by way of debt for its on-lending purposes. The Board of Directors of Tata Capital Financial Services Limited (TCFSL) has approved the merger of TCFSL, a wholly owned subsidiary of Tata Capital and Tata Cleantech Capital – 80.5 per cent owned subsidiary of TCL with TCL.
The company has been identified as a Non-bank financial institution (NBFC) upper layer by the regulator Reserve Bank of India (RBI). As per the RBI, as an upper-layer NBFC, Tata Capital will have to list in the next two years.
The debt fundraising in the ongoing quarter will help Tata Capital to grow the balance sheet of the merged entity, said a banking source.
“Tata Capital is getting aggressive in the retail loans segment and the majority of funds raised this quarter will be for home loans and personal loans,” said a banker.
