TVS Motor Company has raised Rs 500 crore through the allotment of non-convertible debentures (NCDs) on a private placement basis, the company said in a stock exchange filing on Monday.
The automaker allotted 50,000 senior, rated, unsecured, listed, redeemable, non-convertible debentures with a face value of Rs 1 lakh each, aggregating Rs 500 crore. The securities will be listed on the National Stock Exchange of India.
Debenture Terms: Tenure, Coupon and Maturity Schedule
The debentures have a tenure of 36 months and will mature on July 17, 2029. They carry an annual coupon of 7.30%, payable once every year. Interest payments are scheduled for July 17, 2027, July 17, 2028, and July 17, 2029, while the principal will be redeemed on the maturity date, subject to any early redemption provisions under the terms of the issue.
The filing said the instruments are unsecured, and no charge has been created over the company's assets. It also said no special rights or privileges are attached to the debentures.
Default Provisions and Allotment Process
Under the terms of the issue, if there is a delay of more than three months in the payment of interest or principal, or a default in repayment, investors will be entitled to an additional interest of 2% per annum over and above the coupon rate on the outstanding principal amount from the end of the cure period until the default is rectified.
The company said there were no comments relating to any delay or default in servicing the securities. It also said there had been no cancellation or termination of the proposal for the issuance.
The company's administrative committee of directors, acting under authority delegated by the board, approved the allotment of the debentures on July 17, following successful bidding on the National Stock Exchange's Electronic Bidding Platform. The allotment was completed after the identified investors remitted the subscription amount, the filing said.