Tata Motors announced the withdrawal of its plan to issue non-convertible debentures (NCD) of up to Rs 1,000 crore on a private placement basis due to tight money market conditions.
In a regulatory filing, the company said that it continues to have sufficient liquidity and would consider issuance of NCDs at the appropriate time and under normalised market conditions with necessary approvals.
“The company has decided to withdraw the issue for private placement of unsecured NCDs in view of the higher cost expectations from the market participants due to the tight money market conditions,” the company said.
Interestingly, the development comes just two days after the company’s board-constituted committee approved the offer for subscription on a private placement basis up to 10,000 rated, listed, unsecured, redeemable NCDs of face value Rs 10 lakh each at par aggregating up to Rs 1,000 crore in three tranches, of Rs 500 crore, Rs 300 crore and Rs 200 crore.
On April 28, the company had announced to issue NCDs worth Rs 1,000 crore to raise liquidity.