Tata Capital receives overwhelming response for non-convertible debentures issue, raises over Rs 3000 Crore

- Subscription of over Rs 3,000 crore received (6 times the issue amount)
- Company to retain subscription of Rs 1,500 crore ie, up to the rated amount
- Overwhelming response from all categories of investors

February 25, 2009 - Tata Capital Limited, a wholly-owned subsidiary of Tata Sons Limited, which is registered with the Reserve Bank of India (RBI) as a systemically important non deposit accepting, non banking financial company has received an overwhelming response for its public issue of secured non-convertible debentures (NCD). Based on subscriptions of over Rs3,000 crore received, the issue was over subscribed by more than six times.

The issue opened for subscription on 2nd February 2009 and closed on 24th February 2009. The Rs500 crore issue had an option for the company to retain an additional Rs1,000 crore. Tata Capital has decided to retain total subscriptions of Rs1,500 crore, which is up to the rated amount. The NCDs will be listed on the National Stock Exchange (NSE).

"The issue has gained significant acceptance and this reinstates the investors' confidence in Tata Capital. Based on the good response that the NCD issue has generated, we feel such bonds will become an instrument of choice for investors and other corporates leading to the development of a strong corporate bond market," said Praveen P Kadle, managing director, Tata Capital Limited.

“The issue proceeds are proposed to be used for the company's various financing activities including lending and investments, business operations including its capital expenditure and working capital requirements and to repay existing loans," added Mr. Kadle.

ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd and DSP Merrill Lynch Ltd were the lead managers to the issue. Tata Capital Markets Limited were the advisors to the issue.

Source : Equity Bulls

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