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| Tata Capital enters capital market with public issue of NCDs |
| Press Trust of India / Hyderabad Feb 04, 2009, 16:36 IST |
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Tata Capital, a wholly-owned subsidiary of Tata Sons Ltd, has entered the capital market with a public issue of secured non-convertible debentures aggregating Rs 500 crore.
The public issue has an option to retain over-subscription of up to Rs 1,000 crore.
The issue that was launched on February 2 closes on February 24 or earlier on such date as may be decided at the discretion of the Committee of Directors of the company.
Interest at 12 per cent per annum is being offered for annual and cumulative interest payment options, Tata Capital CFO Govind Shankaranarayanan told reporters here.
The minimum amount for application for quarterly, annual and cumulative interest payments was Rs 10,000 and additional investments in multiples of Rs 1,000, he said.
The minimum amount for monthly interest payments was Rs 1,00,000 and additional in multiples of Rs 1,00,000, at a rate of 11 per cent per annum with an annualised yield of 11.57 per cent, he added.
The net proceeds of the issue are proposed to be used for the company's various financing activities, including lending and investments, repayment of existing loans and business operations comprising capital expenditure and working capital requirements, Sankaranarayanan said.
"We intend to expand the scale of our operations, explore new distribution channels and increase our reach and customer base both domestically and internationally, he said.
The focus is on expanding the scale of our operations to smaller Indian cities which we believe present attractive opportunities both in terms of clients and revenues", he added.
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