Tata Capital Financial Services a subsidiary of Tata Capital Ltd. and an NBFC is raising Rs 7,500 crore by issuing NCDs (Non-Convertible Debentures). Out of this, the company will raise secured NCDs worth Rs 6,000 crore and unsecured NCDs worth Rs 1,500 crore. Secured means that the NCD is backed up by an asset while unsecured means that the NCD is not backed up by a specific asset. Unsecured NCDs are only backed up by the capital of the company. The issue has been rated ‘AAA Stable’ by both CRISIL and CARE.
The company will offer interest rates of 8.7% to 9.1% depending on the type of investor at NCD offered (secured or unsecured). You can find a detailed break-up of the rates in the table below.
The first tranche of the NCD issue worth Rs 2,000 crore will open for subscription on 10th September 2018 and close on 21st September 2018. The NCDs will have a face value of Rs 1,000 and the minimum subscription is 10 NCDs (together worth Rs 10,000). The NCDs will be listed on the BSE and NSE after issue.
|Type of Investor||Tenure||Tenure||Tenure|
|3 years||5 years||10 years|
|Category I and II (Public Financial Institutions and Companies)||8.7%||8.8%||9.0%|
|Category III and IV (HNIs and Retail Investors)||8.8%||8.9%||9.1%|
|Type of NCD||Secured, Rated and Listed NCDs||Secured, Rated and Listed NCDs||Unsecured, Subordinated, Rated and Listed NCDs|
Interest on NCDs is taxable at slab rate. However, no TDS is deducted for the same.
How to apply
You can download application forms and submit at the branches of the lead managers of the issue. The lead managers are Axis Bank, Edelweiss Financial Services, AK Capital, Karvy Computershare and Vistara ITCL. The application can either be ASBA (in which case your application amount is blocked and then deducted on allotment) or non-ASBA (in which case you submit a cheque or DD with the application).