Tata Capital's Rs 500 cr bond issue to start tomorrow

New Delhi, Feb 01: Tata Capital's Rs 500 crore bond issue will start tomorrow, a move that will help the company fund various financing activities including lending and investing, repaying existing loans and business operations among others. Tata Capital, a wholly-owned subsidiary of Tata Sons, proposes to enter the capital markets on February 2, 2009 with a public issue of Secured Non-Convertible Debentures (NCDs) aggregating to Rs 500 crores, a company statement said. The issue would also have an option to retain over-subscription of up to Rs 1,000 crores and has in this regard filed a prospectus with the Registrar of Companies, Maharashtra, the statement added.

The issue that opens tomorrow would close on February 24 or earlier or on such date as may be decided at the discretion of the Committee of Directors of Tata Capital subject to necessary approvals. Tata Capital would offer 12 per cent interest for the annual and cumulative interest payment options and 11.25 per cent for those opting for quarterly interest payment which will have an annual yield of 11.73 per cent. The tenure of all the NCDs would be of five years with varied put and call options and for each category of investors, over subscription allotment would be on a first-come-first-served basis. ICICI Securities, Citigroup Global Markets India and DSP Merrill Lynch are the lead managers for the issue while Tata Capital Markets would act as the advisor to the issue.

Bureau Report