Tata Chemicals Limited has announced the finalisation of terms for its proposed ₹1,500 crore non-convertible debenture (NCD) issuance, following approval from the Internal Committee constituted by the company’s Board of Directors. The issue will be executed through a private placement and will comprise 1,50,000 NCDs, each carrying a face value of ₹1,00,000.
These NCDs are unsecured, rated, redeemable, taxable, and non-cumulative, and will be listed on the NSE Debt Segment.
NCD Issuance Structure
The structure and composition of the debt issuance are as follows:
| Parameter | Details |
| Total NCDs | 1,50,000 units |
| Face Value per NCD | ₹1,00,000 |
| Total Issue Size | ₹1,500 crore |
| Issue Type | Private Placement |
| Security Type | Listed, Unsecured, Rated, Redeemable, Taxable, Non-Cumulative NCDs |
This structure allows the company to raise capital from eligible institutional investors without impacting its equity base.
Timeline and Tenure Details
The company has set the deemed date of allotment as December 17, 2025. The NCDs will carry a fixed tenure of 2 years and 364 days, making it a short-to-medium term debt instrument.
The issue follows a bullet maturity structure, implying full repayment of principal at the end of the tenure with no amortisation during the life of the instrument.
| Timeline Parameter | Details |
| Deemed Allotment Date | December 17, 2025 |
| Tenure | 2 years 364 days |
| Maturity Type | Bullet Repayment |
| Listing Platform | NSE Debt Segment |
Interest, Rating, and Bidding Framework
The coupon rate for the NCDs will be determined via the NSE Electronic Bidding Platform (EBP) through a price-bidding process. Allotment may occur on a uniform yield or multiple yield basis as per bidding outcomes.
Interest will be paid annually except on the maturity date, when the final interest payment and principal repayment will occur simultaneously.
Rating Details
| Rating Agency | Rating |
| CARE Ratings | AA / Stable |
| CRISIL Ratings | AA+ / Stable |
These strong credit ratings reinforce investor confidence and highlight the company’s robust financial profile.
Strategic Purpose and Funding Approach
The NCD issuance enables Tata Chemicals to tap debt markets efficiently without diluting equity shares. Leveraging its high creditworthiness, the company aims to raise long-term capital on favourable terms while maintaining financial flexibility.
The private placement route offers additional advantages such as:
- Controlled investor participation
- Quicker execution timelines
- Customised structuring possibilities
- Lower issuance and compliance costs compared to a public debt issuance
This fundraising supports the company’s ongoing financial planning and strengthens its debt capital profile.
Disclaimer:
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