Tata Capital Limited has successfully raised USD 400 million through the issuance of Fixed Rate Senior Unsecured Notes under its USD 2 billion medium term note programme. The notes carry a fixed coupon rate of 5.332% and a tenure of 3.5 years, maturing on January 21, 2030. This issuance marks the company's second foray into the USD bond market and follows its S&P BBB rating upgrade and equity listing.

The transaction was priced at UST + 107 bps, representing a tightening of 33 bps from the initial price guidance of UST + 140 bps. The order book was oversubscribed by 4 times, witnessing broad participation from investors across Asia and EMEA, including asset managers, insurance companies, and banks. The proceeds from the notes will be utilized for onward lending and other activities in accordance with extant ECB regulations.

Key Transaction Details

Strategic Implications

Rajiv Sabharwal, Managing Director and Chief Executive Officer of Tata Capital Limited, highlighted that the issuance strengthens the company's liability profile and supports its long-term growth strategy. He noted that the successful pricing reflects strong investor confidence and helps diversify the funding mix. The notes are issued under Regulation S of the U.S. Securities Act 1933 and are not registered under the Securities Act, meaning they are not offered for sale in the United States or to the public in India.

HSBC, MUFG, and Standard Chartered Bank acted as Joint Global Coordinators and Joint Bookrunners for the transaction. Tata Capital remains the only Indian private sector NBFC to have accessed the USD bond market with an Investment Grade rating at the time of issuance.

Tata Capital has fixed Monday, July 27, 2026, as the record date to determine the entitlement of members eligible to receive the final dividend for the financial year ended March 31, 2026. The Board of Directors recommended a dividend of Re. 0.57 per Equity Share of face value of ₹10 each, subject to the approval of the shareholders at the upcoming Annual General Meeting (AGM). The dividend will be paid on or after August 24, 2026, after deduction of tax at source as applicable. This decision was taken by the Board during its meeting held on April 23, 2026.

The Board approved the convening of the 35th AGM on Wednesday, August 19, 2026, at 11.00 a.m. The meeting will be conducted through Video Conferencing or Other Audio-Visual Means, in compliance with guidelines issued by the Ministry of Corporate Affairs and the Securities and Exchange Board of India (SEBI). Members can attend and participate in the AGM through the VC / OAVM facility only, and no provision has been made to attend the meeting in person.

Auditor Appointment

Based on the recommendation of the Audit Committee, the Board approved the appointment of M/s. T. P. Ostwal & Associates LLP, Chartered Accountants, as one of the Joint Statutory Auditors of the company. The appointment is for a period of three consecutive years, covering FY 2026-27, FY 2027-28, and FY 2028-29. The firm will hold office from the conclusion of the 35th AGM until the conclusion of the 38th AGM, subject to shareholder approval.

This appointment follows the conclusion of the tenure of the existing Joint Statutory Auditor, M/s. MSKA & Associates LLP, at the ensuing 35th AGM. The change is in accordance with RBI Circular No. RBI/2021-22/25 Ref. No. DoS.CO.ARG/SEC.01/08.91.001/2021-22 dated April 27, 2021, regarding guidelines for the appointment of statutory auditors for NBFCs.

Auditor Details

M/s. T. P. Ostwal & Associates LLP is a Mumbai-based firm established in 2003 with an employee base of over 89 personnel. The firm provides services including statutory audit, tax consultancy, management consultancy, and goods and services tax matters.