·       Ratings – CRISIL AAA / Stable by CRISIL Limited (“CRISIL”) and CARE AAA; Stable by CARE Ratings Limited (“CARE Ratings”)

·       Tranche II Issue Size: Rs. 412,600 lakh (out of which Rs. 299,790 lakh Secured & Rs. 112,810 lakh Unsecured Subordinated)

·       Interest pay-out on Annual basis for all the options

·       Minimum application size Rs. 10,000 collectively across all Options ranging from 3 to 10 years

·       Allotment on first-come, first-serve basis

Mumbai, August 08, 2019 (GPN) : Tata Capital Financial Services Limited (the “Company” or the “Issuer”), a Systemically Important Non – Deposit taking Non – Banking Financial Company (“ND – SI – NBFC”) focused on providing a broad suite of financing products customized to cater to the needs of various segments, proposes to open on August 13, 2019, a Public Issue of Secured, Redeemable, Non-Convertible Debentures of Face Value of Rs. 1,000 each (“Secured NCDs”) up to Rs. 299,790 lakh and Unsecured, Subordinated, Redeemable, Non-Convertible Debentures of Face Value of Rs. 1,000 each (“Unsecured NCDs”) up to Rs. 112,810 lakh, aggregating up to Rs. 412,600 lakh (“Tranche II Issue”). The base issue size of Tranche II Issue is Rs. 50,000 lakh, with an option to retain oversubscription upto Rs. 362,600 lakh, aggregating upto Rs. 412,600 lakh (“Residual Shelf Limit”).

The Tranche II Issue is scheduled to close on August 23, 2019 with an option of early closure or extension as decided by the Board of Directors of the Company (“Board”) or the Working Committee of the Board.

Mr. Rajiv Sabharwal, MD and CEO, Tata Capital Limited, said, “Tata Capital Financial Services is well-diversified with assets across Retail, SME & Commercial Finance. It helps us to cater to a wide spectrum of customers. Our strong parentage, triple AAA ratings and commitment to transparency position us well in the industry. We continue to focus on our strategy of Synergy, Simplicity and using digital as a differentiator It allows us to meet the expectations of the ever evolving Indian customer. We look forward to being a significant contributor to the India growth story.”

About Tata Capital Financial Services Limited

Tata Capital Financial Services Limited (“TCFSL”) is a Systemically Important Non – Deposit taking Non – Banking Financial Company (“ND – SI – NBFC”) focused on providing a broad suite of financing products customized to cater the needs of various segments. TCFSLs financing products include:

Commercial and Small and Medium Enterprise Finance Division (“CSFD”): CSFD offers commercial finance to corporates which includes vanilla term loans, working capital term loans, channel finance, bill discounting, construction equipment finance, leasing solutions, lease rental discounting, promoter finance and structured products.

Consumer Finance and Advisory Business (“CFAB”):  CFAB offers a wide range of consumer loans such as auto loans (used car loans and two wheeler loans), business loans, loans against property, personal loans, consumer durable loans and loans against securities as well as wealth management.

TCFSL is promoted by and is a wholly owned subsidiary of Tata Capital Limited (“TCL”), which is a diversified financial services company providing services through its subsidiaries to retail, corporate and institutional clients. TCL is the financial services arm of the Tata group, which is a diversified global business group serving a wide range of customers across varied sectors such as steel, motors, power, chemicals, telecommunications and hospitality.

The issue is rated by CRISIL & CARE

The NCDs proposed to be issued under this Tranche II Issue have been rated “CRISIL AAA / Stable” by CRISIL Limited and have been rated “CARE AAA; Stable” by CARE Ratings Limited.

The minimum application amount is Rs. 10,000 (Rupees Ten Thousand only) collectively across all Options and in multiples of One (1) NCD after the minimum application amount across all the Options, of face value of Rs. 1000 each after the minimum application. Allotment is on a first-come-first-serve basis (except on the date of oversubscription, if any, when all the investors applying on the said date will get allotment on a proportionate basis).

Issue Structure:

Option I NCDs (Secured), interest would be paid on an annual basis at 8.35% to Category I and Category II investors and on an annual basis at 8.45% to Category III and Category IV investors. Effective yield per annum for Category I and Category II investors is 8.34% and for Category III and Category IV investors is 8.44%.

Option II NCDs (Secured), interest would be paid on an annual basis at 8.40% to Category I and Category II investors and on an annual basis at 8.50% to Category III and Category IV investors. Effective yield per annum for Category I and Category II investors is 8.39% and for Category III and Category IV investors is 8.49%.

Option III NCDs (Secured), interest would be paid on an annual basis at 8.55% to Category I and Category II investors and on an annual basis at 8.65% to Category III and Category IV investors. Effective yield per annum for Category I and Category II investors is 8.54% and for Category III and Category IV investors is 8.64%.

Option IV NCDs (Unsecured Subordinated), interest would be paid on an annual basis at 8.75% to Category I and Category II investors and on an annual basis at 8.85% to Category III and Category IV investors. Effective yield per annum for Category I and Category II investors is 8.74% and for Category III and Category IV investors is 8.84%.

At least 75% of the net proceeds of the Public Issue of NCDs will be used for the purpose of onward lending, financing, and for repayment /prepayment of interest and principal of existing borrowings of the Company. A maximum of up to 25% will be used for general corporate purposes.

The NCDs offered through this Tranche II Prospectus are proposed to be listed on the BSE Limited and (“BSE”) and the National Stock Exchange of India Limited (“NSE”). BSE shall be the Designated Stock Exchange.

The Lead Managers to the Issue are Edelweiss Financial Services Limited, A. K. Capital Services Limited and Axis Bank Limited.

Category III Investor / High Net-worth Individual Investors (“HNIs”)

·       Resident Indian Individuals and Hindu Undivided Families through the Karta applying for an amount aggregating to above Rs. 10,00,000 across all options of NCDs in the Tranche II Issue.

Category IV Investor / Retail Individual Investors

·       Resident Indian Individuals and Hindu Undivided Families through the Karta applying for an amount aggregating up to and including Rs. 10,00,000 across all options of NCDs in the Tranche II Issue. ENDS