Tata Chemicals Raises ₹1,500 Crore Via Private Placement Of NCDs

Tata Chemicals Ltd announced on Wednesday that it has raised ₹1,500 crore by issuing non-convertible debentures (NCDs) on a private placement basis. The fundraiser was disclosed through a regulatory filing.

Details of the NCD Issue

The company allotted 1.5 lakh NCDs with a face value of ₹1 lakh each. These debentures are listed, unsecured, rated, redeemable, taxable and non-cumulative in nature. The funds were raised in cash from identified investors.

Tenure And Interest Rate

The NCDs have a tenure of 2 years and 364 days and carry a fixed interest rate of 7.06% per annum. The allotment was done using multiple yield-based methods.

Listing And Approvals

The debentures will be listed on the debt segment of the National Stock Exchange (NSE). The allotment was approved by an internal committee set up by the company’s board of directors.

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What are NCDs?

Non-convertible debentures are debt instruments used by companies to raise long-term funds. They offer fixed returns and are generally preferred by investors looking for stable income without taking equity market risk.

Tata Chemicals Share Price Movement

Tata Chemicals share price (NSE: TATACHEM) was trading at ₹752.65 on the NSE around 2:33 pm IST on December 17, down 0.43% for the day. The stock opened at ₹755.90 and moved between an intraday high of ₹759.80 and a low of ₹752.15. The company has a market capitalisation of about ₹19.18 lakh crore and is currently valued at a price-to-earnings ratio of 79.77. Over the past year, the stock has hit a 52-week high of ₹1,107 and a low of ₹747. Tata Chemicals offers a dividend yield of 1.46%, with a quarterly dividend payout of ₹2.75 per share.

Conclusion

By raising ₹1,500 crore through NCDs, Tata Chemicals has strengthened its funding base at a fixed cost. The move provides the company with medium-term capital while offering investors predictable returns through a rated debt instrument.

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