Tata Motors board approves ₹2,000 crore fundraise via issue of NCDs on private placement basis

Tata Motors share price traded higher on Wednesday after the company’s board approved fundraising of up to ₹2,000 crore. Tata Motors shares gained as much as 1.34% to ₹688.95 apiece on the BSE.

The board of directors of auto major Tata Motors, in its meeting today, March 19, considerd and approved fundraising through the issuance of Non-Convertible Debentures on a private placement basis.

“...we hereby inform you that the Committee duly constituted by the Board of Directors of Tata Motors Limited at its Meeting held today, i.e., Wednesday, March 19, 2025 at 11:45 a.m to 12:30 p.m. has, inter alia, approved the issuance of Non-Convertible Debentures (“NCDs”) aggregating upto ₹2,000 crore,” Tata Motors said in a regulatory filing on March 19.

Tata Motors’ board approved issuance of Rated, Listed, Unsecured, Fixed Coupon Redeemable, Non Convertible Debentures (NCDs) on a private placement basis to eligible investors.

The company will issue up to 2,00,000 NCDs of face value ₹1,00,000 each aggregating to up to ₹2,000 crore in three tranches. The Tata Group company is offering a fixed coupon rate of 7.65% per annum for the unsecured NCDs.

The proposed deemed date of allotment of the NCD in Tranche I is March 27, 2025, Tranche II is March 27, 2025 and Tranche III is March 27, 2025. Meanwhile the proposed date of maturity for NCDs in Tranche I is March 26, 2027, Tranche II is March 24, 2028, and Tranche III is March 27, 2028.

The NCDs are proposed to be listed on Wholesale Debt Market Segment of the NSE, Tata Motors said.

Tata Motors Price Hike

Tata Motors had on Tuesday announced an increase in prices of its commercial vehicles (CV) by up to 2%, effective from April 2025.

“Tata Motors, India’s largest commercial vehicle manufacturer, today announced a price increase of up to 2%, across its commercial vehicle range, effective 1st April 2025. The price increase is to offset the rise in input costs, and will vary as per individual model and variant,” Tata Motors said in a statement on March 17.

Tata Motors’ price hike followed a similar move made by Maruti Suzuki India earlier during the day.

The largest passenger car maker in India, Maruti Suzuki, on Monday announced an increase in prices of its vehicles by up to 4% from April 2025, on the back of increasing input costs. The price hike, it said, will vary depending upon the models.

Tata Motors Share Price Trend

Tata Motors share price has remained flat in the past one month, but the auto stock has declined 9% on a year-to-date (YTD) basis. Over the past six months, the Tata Group stock share price has dropped 30%.

However, Tata Motors stock price has risen 63% in two years, and has delivered multibagger returns of 835% in five years.

At 2:10 PM, Tata Motors shares were trading 0.25% higher at ₹681.50 apiece on the BSE. 

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