Tata Capital Financial NCD offer opens on September 10

Tata Capital Financial Services Ltd. (TCFSL) is a Tata group company and a demerged part of Tata Capital Ltd. which is under the fold of Tata Sons Ltd.

TCFSL is coming out with a maiden debt offer of NCDs with a base size of Rs 2,000 crore and has a shelf limit of Rs 7,500 crore including unsecured NCDs of Rs 1,500 crore. Funds mobilised through this debt offer shall be utilised for the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of TCFSL (up to 75%) and the rest as general corpus fund.

Company is offering NCDs with a face value of Rs 1, 000. These NCDs will have tenures of 3 years, 5 years and 10 years, with interest rates in the range of 8.7-9.10 per cent. The company plans to pay 10 basis points more to retail and HNI investors. Of the total issue size, 30 per cent will be reserved for retail investors, who can invest up to Rs 10 lakh. Unsecured NCDs are for 10 years tenure (having interest rate of 9 per cent for QIBs and 9.10 per cent for HNIs and Retail category). Minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. Allotment will be in demat mode only. Allotment will be made on first come – first served basis. Issue opens for subscription on September 10, 2018 and will close on or before September 21, 2018. Post allotment, it will be listed on BSE and NSE.