Tata Projects plans to raise up to Rs 750 crore through NCDs, resurfacing a December 2023 move
Tata Projects sought up to Rs 750 crore via non-convertible debentures and Rs 200 crore through commercial paper to support project execution and working capital, per a December 2023 filing. The company reported Rs 46,000 crore in orders at September-end 2023.
What happened
Tata Projects plans to raise up to Rs 750 crore through NCDs and Rs 200 crore via commercial paper to fund project execution and working capital. India Ratings
Key facts
- Up to Rs 750 crore via non-convertible debentures
- Rs 200 crore via commercial paper
- Net debt of Rs 3,970 crore at end-September 2023
- Cash and equivalents of Rs 680 crore at end-September 2023
- Unutilised fund-based limits of around Rs 500 crore at end-October 2023
What changed
Tata Projects plans to raise up to Rs 750 crore through NCDs and Rs 200 crore via commercial paper to fund project execution and working capital. India Ratings assigned AA and A1+ ratings; the company expects FY24 revenue growth of 8-10%.
Why this matters
Tata Projects’ planned debt raise should bolster liquidity and project delivery capacity, with little immediate impact on retail operations.
What to watch
- Final NCD amount, coupon rate, tenor, collateral terms, and investor subscription level.
- Commercial-paper issuance size and rollover frequency, which will indicate short-term liquidity dependence.
- Order-book growth, order inflow mix, and conversion of the reported Rs 46,000 crore pipeline into revenue.
- Working-capital metrics, receivable days, payables, operating cash flow, and any rating-agency commentary.
- Execution progress on urban, commercial, logistics, transport, and power projects with potential downstream retail-access effects.