Tata Chemicals allots Rs 1,500 crore NCDs at 7.06% coupon
TATACHEM · price
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On the reaction day the stock moved 0.2 pts more than Nifty Smallcap 250 and in line with its Commodity Chemicals peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.
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Tata Chemicals has allotted 1,50,000 Non-Convertible Debentures (NCDs) worth Rs 1,500 crore on a private placement basis to identified investors. Each NCD has a face value of Rs 1 lakh, carries a fixed coupon of 7.06 percent, and has a tenor of about 2 years and 364 days. The NCDs are unsecured, rated, redeemable, taxable, and will be listed on the NSE debt segment. The issue was approved by the Internal Committee of the Board.
Company raises Rs 1,500 crore via NCDs at 7.06 percent coupon. Adds to debt but diversifies funding. No equity dilution as these are debt instruments.