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Tata Capital Financial Services mulls a fundraise of Rs 11,500 cr

Tata Capital Financial Services mulls a fundraise of Rs 11,500 cr

The fundraise comes within weeks of Tata Sons, the holding company and promoter of Tata Companies, informing its stakeholders about its plans to raise up to Rs 40,000 crore as debt in the coming months

 Tata Sons has already pumped in Rs 3,500 crore in Tata Capital Group in the last two financial years to enable the company to meet its financial liabilities Tata Sons has already pumped in Rs 3,500 crore in Tata Capital Group in the last two financial years to enable the company to meet its financial liabilities

Tata Capital's subsidiary Tata Capital Financial Services is mulling a fundraise of up to Rs 11,500 crore as debt to boost its lending book that hit Rs 75,806 crore in FY21. 

The board of Tata Capital Financial Services will meet on September 6 to clear the issue, sources told Business Standard. 

The fundraise comes within weeks of Tata Sons, the holding company and promoter of Tata Companies, informing its stakeholders about its plans to raise up to Rs 40,000 crore as debt in the coming months.

Also Read: Busy time ahead as Tata Sons eyes foray into several sunrise industries

As retail borrowers splurge on passenger vehicles, two-wheelers, and taking personal loans, the demand for Tata Capital Financial Services' products is expected to increase. The products are also likely to be sold through the Tata Super App.

Tata Sons has already pumped in Rs 3,500 crore in Tata Capital Group in the last two financial years to enable the company to meet its financial liabilities. 

Tata Sons have a 95% stake in Tata Capital, which holds the entire equity of Tata Capital Financial Services.

Tata Capital Financial Services clocked a profit of Rs 678 crore in FY21, as against Rs 114 crore in FY20.

Also Read: Tata Group to realign PE biz, shut key fund

Published on: Sep 03, 2021, 11:01 AM IST
Posted by: Manali, Sep 03, 2021, 10:36 AM IST