Tata Capital allots Rs.2,950 crore NCDs at 7.42% coupon
Tata Capital allotted 2,95,000 Secured Redeemable Non-Convertible Debentures (NCDs) worth Rs.2,950 crore on May 21, 2026. The NCDs have an initial coupon rate of 7.42% per annum, a tenor of 1007 days, and mature on February 21, 2029. The issue carries CRISIL AAA/Stable and ICRA AAA/Stable ratings and is secured by a pari-passu charge on movable assets.
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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 |
|---|---|---|---|---|---|
| +1.59% | +4.90% | +3.65% | +0.12% | -1.23% | -1.23% |
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?
Could Tata Capital's aggressive debt issuance strategy signal an upcoming expansion in its lending portfolio, and which sectors are likely to see increased credit deployment?
How will the AAA-rated NCD listing on NSE affect secondary market liquidity, and what investor categories are likely to dominate trading in these instruments?
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