Incorporated in 2010, Tata Capital Financial Services Limited (TCFSL) is a Systemically Important Non-Deposit taking Non-Banking Financial Company (NBFC). The company provides a range of financial products to corporates and consumers.
Corporate Finance- Term loans, working capital term loans, channel finance, bill discounting, construction equipment finance, leasing solutions, lease rental discounting, promoter finance and structured products.
Consumer finance- Car and two-wheeler loans, commercial vehicle loans, tractor loans, business loans, loans against property, personal loans, consumer durable loans and loans against securities.
The company is a wholly owned subsidiary of TCL, the financial services arm of the Tata group. It operates an extensive a network of 134 offices spanning across 23 states.
Key Strengths
1. Diversified and balanced mix of businesses
2. Extensive network of our 134 offices
3. 'Tata' as a recognized brand
4. Robust internal processes
Tata Capital NCD Aug 2019 Detail
Issue Open Aug 13, 2019 - Aug 23, 2019
Security Name Tata Capital Financial Services Ltd
Security Type Secured, Redeemable, Non-Convertible Debentures (Secured NCDs) and/or Unsecured Subordinated Non-Convertible Debentures (Unsecured NCDs)
Issue Size (Base) Rs 500.00 Crores
Issue Size (Shelf) Rs 3,626.00 Crores
Issue Price Rs 1000 per NCD
Face Value Rs 1000 each NCD
Minimum Lot size 10 NCD
Market Lot 1 NCD
Listing At BSE, NSE
Credit Rating CRISIL AAA / Stable by CRISIL Ltd and CARE AAA Stable by CARE Ratings Ltd
Tenor 3 years/ 5 years/ 8 years/ 10 years
Series
Series I to Series IV
Payment Frequency Annual
Basis of Allotment First Come First Serve Basis
NCD Allocation Ratio
NCD's allocated in each investor category:
Category ? NCD's Allocated
Category 1 (QIB) 15%
Category 2 (NII) 15%
Category 3 (HNI) 35%
Category 4 (RII) 35%
Coupon Rates
Coupon rates for series 1 to 4
Series 1 Series 2 Series 3 Series 4
Frequency of Interest Payment Annual Annual Annual Annual
Nature Secured Unsecured
Tenor 3 years 5 years 8 years 10 years
Coupon Rate For Category I & II 8.35% 8.40% 8.55% 8.75%
Coupon Rate For Category III & IV 8.45% 8.50% 8.65% 8.85%
Amount on Maturity For Category I & II/ for III & IV ?1,000 ?1,000 ?1,000 ?1,000
NCD Rating Detail
The NCDs proposed to be issued under this Tranche II Issue have been rated "CRISIL AAA / Stable" for an amount of up to ?7,50,000 lakh by CRISIL Limited vide its letter dated August 15, 2018, revalidated vide its letter dated August 27, 2018 and further revalidated by letter dated July 25, 2019 and have been rated "CARE AAA; Stable" for an amount up to ?7,50,000 lakh by CARE Ratings Limited vide its letter dated August 14, 2018, revalidated vide its letter dated August 27, 2018 and further revalidated by letter dated July 26, 2019. The ratings of the NCDs issued by CRISIL Limited indicate highest degree of safety regarding timely servicing of financial obligations.
Company Promoters
Tata Capital Limited is the promoter of the company.
Objects of the Issue:
TCFSL proposes to utilise the funds which are being raised through the Tranche II Issue, after deducting the Tranche II Issue related expenses to the extent payable by TCFSL ("Net Proceeds"), towards funding the following objects (collectively, referred to herein as the "Objects"):
1. For the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of TCFSL
2. General Corporate Purposes
Conclusion / Investment Strategy
A debt offer with Good Rating from well known investor friendly Tata group with attractive coupon rates make it a worthy option for investors looking for long term fixed income. (Subscribe)
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