Tata Motors Fundraise: Tata Group Company To Raise Rs 500 Crore Via NCD - Check Date

Tata Motors Limited has notified the stock exchanges that a meeting of a designated committee of its Board of Directors is scheduled for Friday, May 2, 2025, to consider and approve the issuance of Non-Convertible Debentures (NCDs) worth up to Rs 500 crore on a private placement basis.

The proposed debentures will be rated, listed, unsecured, and redeemable, offering the company a flexible and cost-effective route to raise capital. This step is part of Tata Motors' ongoing strategy to diversify its funding sources and strengthen its financial footing, particularly in support of capital expenditure and refinancing activities.

In a regulatory filing, the company stated: “A meeting of the duly constituted Committee of the Board of Directors of the Company is scheduled to be held on Friday, May 02, 2025, inter alia, to consider and approve the issuance of Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures on a private placement basis aggregating up to Rs 500 crore.”

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The proposed issuance remains subject to final approval by the committee and prevailing market conditions. If greenlit, the NCDs will be listed on a recognized stock exchange, enhancing liquidity and visibility for institutional investors.

Tata Motors has consistently utilized debt instruments such as NCDs to meet its funding needs across both its passenger and commercial vehicle segments. Known for their lower cost and non-dilutive nature, NCDs have proven a reliable financing tool for the company in previous fundraising cycles.

This latest move comes amid broader efforts by Tata Motors to fortify its balance sheet and drive business transformation. The automaker has seen improved financial performance in recent quarters, aided by solid demand for its vehicles in the domestic market, operational efficiencies, and a turnaround in the performance of its UK-based luxury arm, Jaguar Land Rover (JLR).

For the quarter ended December 2024, the company reported a consolidated net profit of Rs 5,408 crore, buoyed by robust sales at JLR and healthy growth in its India business. Looking ahead, Tata Motors is also doubling down on its electric vehicle (EV) strategy, with several new models slated for launch under its dedicated Tata.ev brand in FY26.