Tata Capital Financial Services Limited is a Systemically Important Non – Deposit taking Non – Banking Financial Company ('ND – SI – NBFC') focused on providing a broad suite of financing products customised to cater the needs of various segments. Company's financing products include:1) Corporate finance: The Corporate Finance Division ('CFD') offers commercial finance which offers vanilla term loans, working capital term loans, channel finance, bill discounting, construction equipment finance, leasing solutions, lease rental discounting, promoter finance and structured products. In addition, the Special Assets Management Group ('SAMG') was formed to manage the project finance portfolio of the erstwhile infrastructure finance division;2) Consumer finance: The Consumer Finance and Advisory Business Division ('CFABD') offers a wide range of consumer loans such as car and two wheeler loans, commercial vehicle loans, tractor loans, business loans, loans against property, personal loans, consumer durable loans and loans against securities Company is offering NCDs with a face value of Rs 1000. These NCDs will have tenures of 3 years, 5 years and 10 years, with interest rates in the range of 8.7-9.10%. The company plans to pay 10 basis points more to retail and HNI investors. Of the total issue size, 30% will be reserved for retail investors, who can invest up to Rs 10 lakhs. Unsecured NCDs are for 10 years tenure (having interest rate of 9% for QIBs and 9.10% for HNIs and Retail category). Minimum application is to be made for 10 NCDs and in multiple of 1 NCD thereon, thereafter. Allotment will be in demat mode only. Allotment will be made on "First come – First Served" basis. Company’s total loan and advances outstanding was Rs. 36,913.24 cr. as of March 31, 2018, out of which, secured loans constituted 59.30% of the Company's total loan and advances outstanding as at March 31, 2018. TCFSL’s CRAR, as of March 31, 2018 computed on the basis of applicable RBI requirements was 16.68% compared to the RBI stipulated minimum requirement of 15% as per the Prudential Norms of RBI. Its gross NPAs and net NPAs as a percentage of total loan and advances outstanding was 3.32% and 0.90%, respectively as of March 31, 2018. This issue is rated CRISIL / AAA-Stable by CRISIL and CARE / AAA-Stable by CARE. The ratings of the NCDs indicate highest degree of safety regarding timely servicing of financial obligations. Good Rating, a brand like Tata group and lucrative coupon rates make this offer a worthy option for investors looking for long term fixed income. We give SUBSCRIBE rating to debt issue.
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