Tata to raise INR 1,000 crores through non-convertible debentures
Category: #business  By Mateen Dalal  Date: 2020-04-29
  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn

Tata to raise INR 1,000 crores through non-convertible debentures

Tata Motors, a renowned Indian automotive company, has reportedly announced that the firm’s board would be conducting a meeting on 5 May in order to discuss raising funds worth up to INR 1,000 crores from non-convertible debentures.

The company, from a notice sent to exchanges, stated that Tata Motors is desirous of providing Redeemable, Unsecured, Listed, Rated, and Non-Convertible Debentures collecting INR 1,000 crores across three tranches and the company is conducting a meeting on May 5, 2020, of its constituted Committee of the Board for the same. 

Previously in this month, S&P Global Ratings had decreased senior unsecured notes of Tata Motors from B+ to B on falling credit metrics. This downfall has been attributed to the negative impact on the economy due to the novel coronavirus outbreak.

The Board of Directors of Tata had previously approved a new resolution related to the fundraising on 27 March when the company also approved the hive off of its passenger vehicle unit into one of its subsidiaries.   

India’s automakers are now heading towards an uncertain future since they do not know when their manufacturing factories would be reopened, which have now been shut for about a month due to the COVID-19 pandemic. The companies are expected to be highly affected since the vehicle demand may be reduced as potential customers postpone vehicle purchases amid the lockdown and also as the economy is facing a massive slack. Additionally, the globally spread supply chains of these companies would require a long time to rebuild. 

Liquidity deficit is the greatest issue faced by the automotive companies, their suppliers, and dealers in the lockdown as they all still have fixed expenses like debt obligations, depreciating assets such as production equipment, and employee wages. 

Apart from Tata Motors, Mahindra & Mahindra, another Indian automotive manufacturer, also recently announced its plans to raise INR 1,000 crores through issuing securities based on private placements.

 

Source credit: https://www.livemint.com/companies/news/tata-motors-to-raise-rs1-000-crore-via-ncds-11588083014670.html 

  • shareshare_icon
  • Twitter
  • Facebook
  • LinkedIn


About Author

Mateen Dalal     twitter

Mateen Dalal

A qualified electronics and telecommunication engineer, Mateen Dalal embarked on his professional journey working as a quality and test engineer. Harnessing his passion for content creation however, Mateen pens down industry-rich articles for ReportsGO.com and a few o...

Read More..

More News By Mateen Dalal

Xiaomi and Oppo team up with UNISOC to manufacture in-house 5G chipsets

Xiaomi and Oppo team up with UNISOC to manufacture in-house 5G chipsets

By Mateen Dalal

The two companies intend to introduce their custom-made sub-6GHz 5G chipsets by the end of 2021. UNISOC has managed to raise around USD 817.20 million for its new venture. Chinese electronics giants including Xiaomi Corp. and Guangdong Oppo Mob...

Twitter explored USD 4 billion takeover of audio-chat app Clubhouse

Twitter explored USD 4 billion takeover of audio-chat app Clubhouse

By Mateen Dalal

Twitter, an American microblogging service company, had touted plans of acquiring Clubhouse, an audio chat iPhone app and live drop-in audio networking platform. The deal was estimated to be valued at around USD 4 billion, as per reliable sources. T...

Beyond Meat sets up factory in China to expedite localized innovation

Beyond Meat sets up factory in China to expedite localized innovation

By Mateen Dalal

American plant-based meat substitute producer Beyond Meat has opened a new production facility in China. Apparently, this recent setup is the company’s first facility outside the U.S., making it the only multinational organization solely focusi...