Tata Capital, a wholly-owned subsidiary of Tata Sons, will continue to hold a conservative view of the real estate sector and not augment the exposure beyond the present level of 2-3 per cent.
“Considering the prevailing market conditions, we do not plan to increase our exposure in the real estate sector in the near future,” Tata Capital Chief Financial Officer (CFO) Govind Sankaranarayanan told Business Standard. Of the total advances of about Rs 8,000 crore in different sectors, the company’s exposure to this sector was in the region of Rs 200 crore, he informed.
The company has entered the capital market with a public issue of secured non-convertible debentures (NCDs). The issue will aggregate Rs 500 crore with an option to retain an over-subscription of up to Rs 1,000 crore.
“The issue will close on February 24 and we are confident of getting a good response from the market, especially in the present choppy stock market condition, as our issue has secured high credit rating and provides interest up to 12 per cent,” he added.
The issue proceeds will be used for Tata Capital’s various financing activities, including lending and investments, repay existing loans and business operations, Sankaranarayanan said.
“The issue will have put and call options after 36 months for monthly, annual and cumulative options and 42 months for quarterly option,” he added.