Tata Motors Shares Surge After Fundraising Approval

On Wednesday, Tata Motors witnessed a notable uptick in its share price, climbing by up to 1.34% to reach ₹688.95 on the Bombay Stock Exchange (BSE). This positive movement followed the company’s board decision to raise funds amounting to ₹2,000 crore through the issuance of Non-Convertible Debentures (NCDs) in a private placement offering.

Fundraising Details Approved by Tata Motors’ Board

During a meeting on March 19, 2025, the board of directors at Tata Motors confirmed their strategy to issue NCDs. In a regulatory filing, the company noted, "The Committee constituted by the Board has approved the issuance of Non-Convertible Debentures amounting to ₹2,000 crore." This funding initiative will be executed in three tranches, each consisting of 200,000 NCDs, with a face value of ₹1,00,000 each.

• Coupon Rate: The fixed coupon rate for these unsecured NCDs is set at 7.65% per annum.
• Allotment Dates: All three tranches are scheduled for allotment on March 27, 2025.
• Maturity Dates:
  • Tranche I matures on March 26, 2027.
  • Tranche II matures on March 24, 2028.
  • Tranche III matures on March 27, 2028.

The NCDs are expected to be listed on the Wholesale Debt Market Segment of the National Stock Exchange (NSE), further enhancing their market accessibility.

Price Hike Announcement for Commercial Vehicles

In another development, Tata Motors also declared an impending price hike for its commercial vehicles, which will take effect from April 1, 2025. The company announced a 2% increase, aimed at countering rising input costs, with specific adjustments varying by model and variant. This announcement aligns with a similar price increase by Maruti Suzuki, the leading passenger car maker in India, which will see vehicle prices rise by up to 4%.

Tata Motors Stock Performance Overview

Despite a relatively flat performance over the past month, Tata Motors shares have seen a 9% decline year-to-date, and a significant 30% drop over the last six months. However, looking at a longer horizon, the stock has surged by 63% over the past two years and boasts an impressive 835% gain over the last five years. As of 2:10 PM, shares were trading at ₹681.50, reflecting a slight increase of 0.25%.

In summary, Tata Motors is navigating through financial adjustments with strategic fundraising and price hikes, aiming to maintain its competitive edge in the automotive market. Investors should keep an eye on these developments as they unfold.