InvestorQ : What is the purpose for Tata Motors to raise Rs.1000 crore via NCDs in the market at this point of time?
Chandralekha Desai made post

What is the purpose for Tata Motors to raise Rs.1000 crore via NCDs in the market at this point of time?

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Mitali Bhutta answered.
11 months ago
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You are right that Tata Motors has recently announced plans to raise up to Rs.1000 crore through non convertible debentures. However, a final decision will be taken in their Board meeting to be conducted on May 05, 2020. It will be rated unsecured and redeemable NCDs, which will be listed on the bourses. The Rs.1000 crores will be raised in 3 tranches. The company is facing a cash crunch of sorts with its factories closed for more than a month due to the COVID-19 outbreak. Also, Tata Motors paper has been downgraded by S&P Global Ratings due to the likely economic impact of the virus.

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