Tata International Plans to Raise ₹950 Crore to Repay Perpetual Bonds

As per Moneycontrol report, Tata International Limited (TIL) is preparing a fresh capital raise of ₹950 crore as it moves to redeem existing bonds and ease mounting financial pressure.  

The decision comes at a time when the company faces rising debt levels, uneven business performance, and heightened scrutiny over its funding needs. 

Tata International’s Fundraising Plan 

TIL recently secured shareholder approval at its December 1 extraordinary general meeting to issue non-convertible debentures of up to ₹950 crore. Of this, ₹800 crore has been earmarked to redeem bonds issued in December 2022, while ₹150 crore will support broader corporate requirements. 

These existing perpetual bonds carried an interest rate of 9.1%, but the rate would have risen to 12.1% had the company opted not to redeem them in December 2025. The steep interest escalation made the redemption a strategic necessity to prevent further stress on the company’s cash flows. 

Financial Strain and Operational Landscape 

Operating across 27 countries, TIL manages businesses spanning auto distribution, leather exports, agri-trading and industrial supply chains.  

Yet, financial performance over recent years has remained muted. The company reported revenue of roughly ₹28,000 crore in FY2023–24, with operating margins near 1% and net debt exceeding ₹4,100 crore by September 2024. 

Read More: Tata Chemicals Share Price in Focus; Announces Issuance of NCDs Worth ₹1,500 Crore 

Conclusion 

TIL’s decision to raise ₹950 crore marks a crucial step in navigating its financial pressures and impending debt obligations. The upcoming period will determine whether these measures can steer the company toward operational stability and provide clarity in its long-term strategic direction. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.  

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.