Tata Chemicals has finalised the terms for its non-convertible debentures (NCDs) worth ₹1,500 crores, with the Internal Committee constituted by the Board of Directors approving the key terms and conditions for the debt issuance.

NCD Issuance Structure

The company will issue 1,50,000 NCDs with a face value of ₹1,00,000 each, aggregating to ₹1,500 crores. The securities are structured as listed, unsecured, rated, redeemable, taxable, non-cumulative NCDs to be issued on a private placement basis to eligible investors.

Timeline and Tenure Details

The deemed date of allotment has been set for December 17, 2025, with the NCDs carrying a tenure of 2 years and 364 days from the deemed date of allotment. The instruments will follow a bullet maturity structure with full repayment at the end of the tenure period.

Interest and Rating Framework

The NCDs will carry a fixed interest rate determined through coupon basis price bidding at the Electronic Bidding Platform (EBP) of NSE. The bidding can be conducted on uniform or multiple yield allotment basis, with annual interest payments scheduled except upon final maturity.

Strategic Capital Access

This debt fundraising initiative allows Tata Chemicals to access capital markets without equity dilution while leveraging strong credit ratings from both CARE and CRISIL. The private placement structure provides flexibility in investor selection and terms negotiation, positioning the company to meet its capital requirements efficiently through debt instruments.

Tata Chemicals , a leading player in the chemical industry, has announced a significant capital expenditure plan totaling ₹9.1 billion, aimed at expanding its manufacturing capacity in two key product lines: soda ash and silica.

Investment Breakdown

Expansion Strategy

The company's investment strategy focuses on strengthening its position in two crucial chemical segments:

Soda Ash Expansion

Tata Chemicals plans to invest ₹1.35 billion to increase its soda ash production capacity. Soda ash, also known as sodium carbonate, is a versatile chemical compound used in various industries, including glass manufacturing, detergents, and water treatment.

Silica Expansion

The lion's share of the investment, ₹7.75 billion, is allocated for expanding the company's silica production capabilities. Silica finds applications in diverse industries, including rubber, personal care products, and as a reinforcing filler in tire manufacturing.

This substantial investment signals Tata Chemicals' commitment to growth and its strategy to meet increasing market demand for these essential chemical products. By expanding its manufacturing capacity, the company aims to strengthen its market position and potentially capture new opportunities in the evolving chemical industry landscape.

The expansion plan demonstrates Tata Chemicals' focus on long-term growth and its confidence in the future demand for soda ash and silica. As the company moves forward with these investments, stakeholders will likely be watching closely to see how this expansion impacts Tata Chemicals' market share and financial performance in the coming years.