Tata Motors Raises ₹2,000 Crore via NCDs, Stock Falls on US Tariff Woes

Tata Motors has successfully raised ₹2,000 crore by allotting Non-Convertible Debentures (NCDs) on a private placement basis. The company informed stock exchanges on March 27 that its board had approved the allotment of 2,00,000 NCDs in multiple tranches, each with a face value of ₹1,00,000.

Details of NCD Allotment

The NCDs were distributed among several investors:

• Tranche I: 50,000 NCDs to HDFC Bank

• Tranche II: 10,000 NCDs to Reliance General Insurance and 60,000 to BNP Paribas

• Tranche III:
  • 2,500 NCDs to Care Health Insurance

  • 52,500 NCDs to HDFC Bank

  • 5,000 NCDs to Reliance General Insurance

  • 20,000 NCDs to SBI Short Term Debt Fund

These NCDs will be listed on the NSE and have received an AA+/Stable rating from Crisil. Earlier, on March 19, Tata Motors’ board had approved issuing these NCDs at a 7.65% interest rate.

Tata Motors Shares Drop Despite Fundraising

Despite this capital-raising move, Tata Motors’ stock witnessed a sharp decline in the Indian stock market on March 27.

As of March 28, 9:43 AM IST, Tata Motors share price is trading at ₹671.40, up by ₹2.85 (0.43%). The stock opened at ₹671.85, reaching a high of ₹677.40 and a low of ₹669.30.

Impact of US Tariffs on Auto Imports

The drop was triggered by US President Donald Trump’s announcement of a 25% tariff on all imported cars and auto parts, effective April 2. This move is expected to hurt Tata Motors, particularly its luxury car brand Jaguar Land Rover (JLR), as the US is a key market for the company.

Stock Performance

Tata Motors was among the top losers on the Sensex. The stock fell 6.5% to ₹677.05 at its lowest point during the session and eventually closed 5.56% lower at ₹668.60 on the BSE. The company is already facing challenges due to slowing domestic sales, and the new US tariffs add further pressure.

Conclusion

While Tata Motors’ fundraising strengthens liquidity, the US tariff hike poses a major risk to JLR’s earnings. Investors remain cautious amid global uncertainties.

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