Tata Motors Raises Rs 500 Crore Via Dual-Tranche NCDs Ahead of Q4 FY25 Results – Key Investors Revealed

Tata Motors has approved the allotment of Rs 500 crore worth of Rated, Listed, Unsecured, Redeemable Non-Convertible Debentures (NCDs) on May 13, 2025.

The company is set to announce its Q4 results and dividend today as well.

The issue was carried out in two tranches under series E31B with a face value of Rs 1,00,000 per debenture.

Tata Motors Fundraise 
‘Committee has today approved allotment of 50,000 Rated, Listed, Unsecured, Redeemable, NCDs in multiple series/tranches of face value ₹1,00,000/- each at par aggregating ₹500 crore on private placement basis, on terms and conditions as mentioned in the General Information Document and Key Information Document for the said Issue,’ as mentioned in the exchange filing.

The first tranche raised Rs 300 crore, and the second Rs 200 crore. Both tranches carry an annual coupon of 7.08% and follow a bullet redemption structure at maturity in May 2028. The NCDs will be listed on the Wholesale Debt Market segment of the National Stock Exchange (NSE).

Key institutional investors in the issue include:
Axis Bank Ltd.: Subscribed to 30,000 NCDs (Rs 300 crore)
Yes Bank Ltd.: Subscribed to 10,000 NCDs (Rs 100 crore)
ICICI Bank Ltd.: Subscribed to 10,000 NCDs (Rs 100 crore)

Read More 
Tata Motors Q4 Result Date And Time: Dividend, NCD Fundraiser Call And Other Key Decisions

Tranche-Wise Coupon and Maturity Details
The allotment date for both tranches is May 13, 2025, with bullet redemption due in 2028—May 11 for Tranche I and May 12 for Tranche II. Each NCD will yield Rs 7,080 annually, except the final year where slight variations apply due to the number of days in the coupon period.

Here is the indicative payment schedule per NCD:
Tranche I (Rs 300 Cr):
Coupon Payments: May 13, 2026; May 13, 2027; May 11, 2028
Redemption: Rs 1,00,000 on May 11, 2028

Tranche II (RS 200 Cr):
Coupon Payments: May 13, 2026; May 13, 2027; May 12, 2028
Redemption: Rs 1,00,000 on May 12, 2028

Credit Rating 
Credit Rating Information Services of India Limited (CRISIL) has assigned a CRISIL AA+/Stable rating to the NCDs via its letter dated April 16, 2025. The NCDs are unsecured and carry no specific rights or privileges beyond standard terms. No delays in payment or defaults were reported.