Tata Capital allots Rs.2,950 crore NCDs at 7.42% coupon
Tata Capital Limited allotted Rs.2,950 crore worth of Secured Redeemable Non-Convertible Debentures on May 21, 2026, via private placement. The 2,95,000 NCDs have a tenor of 1007 days, maturing on February 21, 2029, with an initial coupon rate of 7.42% p.a. The issue is rated AAA/Stable by both CRISIL and ICRA and is secured by a charge on the company's receivables.
*this image is generated using AI for illustrative purposes only.
tata capital has successfully allotted Secured Redeemable Non-Convertible Debentures (NCDs) on a private placement basis. The company issued 2,95,000 securities amounting to a total issue size of Rs.2,950 crore on May 21, 2026. The debt instruments are designated as TCL Secured NCD "B" FY 2026-27-VIS-M SERIES “B” FY 2026-27.
The NCDs carry a floating coupon rate determined as a benchmark rate plus a fixed spread. The initial coupon rate has been fixed at 7.42% per annum, calculated as a sum of the 3-Month Treasury Bill rate of 5.32% and a fixed spread of 210 basis points per annum. The coupon rate is set to reset quarterly on specified dates including August 21, 2026, and November 23, 2026, among others, until maturity.
Key Issue Details
The debentures have a tenor of 1007 days from the date of allotment and are scheduled to mature on February 21, 2029. The redemption will be made at face value, which is Rs.1,00,000 per NCD. Interest payments are scheduled for May 21, 2027, May 22, 2028, and February 21, 2029, with the principal redemption also due on the final date.
| Particulars | Details |
|---|---|
| Type of Securities | Secured, Redeemable, Non-Convertible Debentures |
| Issue Size | Rs.2,950 crore |
| Number of Securities | 2,95,000 |
| Initial Coupon Rate | 7.42% p.a. |
| Date of Allotment | May 21, 2026 |
| Date of Maturity | February 21, 2029 |
| Tenor | 1007 days |
Security and Ratings
The NCDs are secured by way of a pari-passu charge on the company's movable property, comprising receivables and book debts arising from loans given by the company, as well as investments. The security cover is stipulated to be equivalent to 1.00 times the aggregate outstanding value of the debentures.
In terms of credit quality, the instruments have received high ratings from leading agencies. CRISIL Ratings Limited has assigned a rating of CRISIL AAA/Stable, while ICRA Limited has rated the issue [ICRA] AAA/Stable. The NCDs are proposed to be listed on the National Stock Exchange of India Limited (NSE).
Historical Stock Returns for Tata Capital
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -0.93% | -2.47% | -11.10% | -6.53% | -9.89% | -9.89% |
How might rising or falling 3-Month Treasury Bill rates impact Tata Capital's interest obligations and investor returns as the coupon resets quarterly through 2029?
Will Tata Capital pursue additional NCD tranches or explore other debt instruments to meet its funding requirements for FY 2026-27 given the scale of this issuance?
How could this Rs.2,950 crore debt raise influence Tata Capital's loan book expansion strategy and its ability to compete in the NBFC lending space over the next two years?
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