Tata Capital Fin Services to raise upto Rs 7,000 crore through NCDs

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Tata Capital Financial Services Limited (TCFSL) plans to raise up to Rs 7,000 crore via bonds to support growth even as efforts to merge it, along with those of Tata Clinic Capital, with parent company Tata Capital Limited (TCL) are underway in the financial current year.

TCFSL, which is engaged in retail, SME and corporate finance, recorded a 32.03% YoY growth in assets to reach Rs. 78,499 crore at the end of March 2023. Its capital adequacy ratio was 17.3% with a Tier 1 level of 13%. cent. Parent company TCL has injected funds worth Rs. 1,150 crore in the form of equity shares into TCFSL during the second half of the 2023 financial year.

Debt market sources said the funds would likely be raised through non-convertible bonds in one or more tranches. Separately, the company also arranged a reissue of a three-year note for next week. The base version is Rs 200 crore with the green boot option worth Rs 800 crore.

CRISIL Ratings has assigned its ‘AAA/Stable’ rating to the proposed NCD at Rs 7,000 crore. Rating assessment is performed on a consolidated basis with Tata Capital at TCFSL, Tata Capital Housing Finance, Tata Cleantech Capital Limited, Tata Securities and Tata Capital, Singapore.

CRISIL said the merger is part of Tata Group’s broader plans to meet the revised regulatory framework for the TCFSL, which is designated as an upper-tier NBFC, under scope-based RBI regulations. It added that the merger would enable a more streamlined organizational structure and improve operational and administrative efficiencies.

First published: May 28, 2023 | 8:14 p.m ist