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TMFL to raise Rs 1,000 cr in debt capital to enhance capital adequacy

tata motors
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Tata Motors Finance (TMFL), a vehicle-financing arm of Tata Motors, plans raise up to Rs 1,000 crore in perpetual debt to enhance capital adequacy. It reported capital adequacy ratio of 15.25 per cent (with tier-I of 10.93 per cent) as on March 31.
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This is marginally above the regulatory requirements of 15 per cent. The firm would need external capital for growth. ICRA has assigned “A+” for the proposed perpetual debt with negative outlook. It is counted as part of capital for purpose of capital adequacy ratio. ICRA expects the capitalisation to improve over the medium-term backed by capital from TaMo.
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Source: Business Standard