On August 20, 2024, Tata Chemicals successfully secured a significant capital infusion by raising Rs 1,700 crore through the issuance of Non-Convertible Debentures (NCDs). This strategic financial maneuver was conducted on a private placement basis, targeting select investors. Each debenture, totaling 1,70,000 in number, was issued at a face value of Rs 1 lakh. These debentures carry a fixed coupon rate of 7.81% and have a maturity term of three years, after which they are due to be repaid.
The raised funds are slated for listing on the Debt Segment of the National Stock Exchange of India Limited (NSE), enhancing the liquidity and marketability of these financial instruments. This move is part of Tata Chemicals’ broader strategy to bolster its financial standing amid challenging economic conditions, as evidenced by a sharp 72% decline in its consolidated net profit for the first fiscal quarter of the year. This financial downturn reflects lower income and increased expenses, highlighting the need for robust capital management strategies.
Tata Chemicals, a prominent entity within the over USD 165 billion Tata Group, is a key player in sectors such as glass, detergents, and industrial chemicals. Additionally, through its subsidiary Rallis India Limited, it maintains a significant presence in the crop protection market. The company’s strategic issuance of NCDs is a critical step in ensuring sustained growth and stability in its diverse industrial engagements.