Tata Capital Financial Services Ltd. plans to raise up to 75 billion rupees by issuing nonconvertible debentures, the Press Trust of India reported Sept. 4.
The nonbank lender will raise 20 billion rupees through the issue of three-, five- and 10-year notes, and retain oversubscription of up to 55 billion rupees.
The debentures will have a coupon rate of between 8.70% and 9.10% depending on tenor and investor class, the report said. The issue will open Sept. 10.
Tata Capital Financial Services plans to use proceeds from the sale for on-lending to businesses.
Its managing director and CEO Rajiv Sabharwal added the company has no plans for an IPO, given its healthy capital adequacy and backing of its parent Tata group.
As of Sept. 4, US$1 was equivalent to 71.47 Indian rupees.