Tata Motors has successfully raised ₹2,000 crore by allotting Non-Convertible Debentures (NCDs) on a private placement basis. The company informed stock exchanges on March 27 that its board had approved the allotment of 2,00,000 NCDs in multiple tranches, each with a face value of ₹1,00,000.
The NCDs were distributed among several investors:
These NCDs will be listed on the NSE and have received an AA+/Stable rating from Crisil. Earlier, on March 19, Tata Motors’ board had approved issuing these NCDs at a 7.65% interest rate.
Despite this capital-raising move, Tata Motors’ stock witnessed a sharp decline in the Indian stock market on March 27.
As of March 28, 9:43 AM IST, Tata Motors share price is trading at ₹671.40, up by ₹2.85 (0.43%). The stock opened at ₹671.85, reaching a high of ₹677.40 and a low of ₹669.30.
The drop was triggered by US President Donald Trump’s announcement of a 25% tariff on all imported cars and auto parts, effective April 2. This move is expected to hurt Tata Motors, particularly its luxury car brand Jaguar Land Rover (JLR), as the US is a key market for the company.
Tata Motors was among the top losers on the Sensex. The stock fell 6.5% to ₹677.05 at its lowest point during the session and eventually closed 5.56% lower at ₹668.60 on the BSE. The company is already facing challenges due to slowing domestic sales, and the new US tariffs add further pressure.
While Tata Motors’ fundraising strengthens liquidity, the US tariff hike poses a major risk to JLR’s earnings. Investors remain cautious amid global uncertainties.
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Published on: Mar 28, 2025, 9:46 AM IST
Kusum Kumari
Kusum Kumari is a Content Writer with 4 years of experience in simplifying financial market concepts. Currently crafting insightful content at Angel One, She specialise in breaking down complex topics into easy-to-understand pieces, blending expertise in market fundamentals and technical analysis.
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