Mumbai: Tata Capital Financial Services’ Rs 4,126-crore non-convertible debentures (NCDs) issue, which opened on Tuesday, got bids worth Rs 1,373.38 crore.

The base issue size of the Tranche II is Rs 500 crore, with an option to retain oversubscription of up to Rs 3,626 crore. Out of the Rs 4,126-crore issue, Rs 2,997.9 crore is secured and Rs 1,128.10 crore unsecured.

The Tranche II Issue is scheduled to close on August 23 with an option of early closure or extension as decided by the board or the working committee of the board.

The NCDs are categorized into four options, where interest would be paid on an annual basis up to 8.35-8.85 per cent to various categories of investors.

At least 75 per cent of the net proceeds of the public issue of NCDs will be used for the purpose of onward lending, financing, and for repayment/prepayment of interest and principal of existing borrowings of the company, Tata Capital said in the note, adding that a maximum of up to 25 per cent will be used for general corporate purposes.

The NCDs offered are proposed to be listed on BSE (designated stock exchange) and NSE.

The NCDs have been rated “AAA/Stable” by Crisil and “AAA/Stable” by CARE Ratings.


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