Mumbai (Maharashtra) [India], April 28 (ANI): Tata Motors said on Tuesday it will be issuing non-convertible debentures (NCDs) worth Rs 1,000 crore to improve liquidity which has taken a hit among all automakers due to the economic slowdown and COVID-10 lockdown.
The NCDs will be issued in three tranches and a special committee of the company's board is scheduled to convene on May 5, the company said in regulatory filings at stock exchanges.
On March 27, Tata Motors said its passenger vehicle business is being hived off as a separate subsidiary with differentiated focus from commercial vehicle business.
It had also approved a resolution regarding the fund raising.
Liquidity deficit has become a big problem for automakers, their dealers and suppliers during the countrywide lockdown as they have fixed costs like employee wages, debt obligations and depreciating assets like manufacturing equipment.
But revenues have frozen as buyers defer purchases. At the same time, auto supply chains are spread globally and re-building them will take weeks and months. (ANI)