Mumbai (Maharashtra) [India], May 7 (ANI): In a surprise move for many investors, Tata Motors on Thursday decided to withdraw the issue for private placement of unsecured non-convertible debentures (NCDs).
Just two days ago, the automaker's board-constituted committee had approved raising up to Rs 1,000 crore by issuing NCDs on a private placement basis.
"The company has decided to withdraw the issue for private placement of unsecured NCDs in view of the higher cost expectations from the market participants due to the tight money market conditions," it said in a brief statement.
"The company continues to have sufficient liquidity and will consider issuance of NCDs at appropriate time and under normalised market conditions with necessary approvals."
On May 5, Tata Motors' board-constituted committee had approved the offer for subscription on a private placement basis up to 10,000 rated, listed, unsecured, redeemable NCDs of face value Rs 10 lakh each at par aggregating up to Rs 1,000 crore.
These were to be issued in three tranches of Rs 500 crore, Rs 300 crore and Rs 200 crore with redemptions due on September 30, 2022, November 28, 2022 and December 29, 2022 respectively.
The fund-raising plan was to improve liquidity which has taken a hit among all automakers due to economic slowdown and COVID-19 lockdown. (ANI)