Thursday, February 26, 2009

Tata Cap NSD issue over subscribed 6 times

Date : Feb-26-2009
Tata Capital's non-convertible debenture (NSD) issue was oversubscribed six times of the offer. It received bids worth above Rs 3,000 crore on vigorous response from all categories of investors. The Rs 500 crore issue had opened for subscription on February 2 and closed on February 24.
Tata Capital said in a statement that the company would retain subscriptions worth Rs 1,500 crore from the issue of secured NCDs. The instrument would be listed on the National Stock Exchange (NSE).

MR Praveen P Kadle, Tata Capital managing director, said, "The issue has gained significant acceptance and this re-instates investor confidence in Tata Capital. Based on the good response we feel such bonds will become an instrument of choice for investors and other corporates leading to the development of a strong corporate bond market."

Amount raised from the issue is planned to use for company's various activities including lending and investments, for capital expenditure and to repay existing loans, he added.

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