Two-Wheeler Major Raises Rs 500 Crore Through NCDs via Private Placement; DII Stake Increases

On Tuesday, Indian equity benchmarks traded marginally lower, with the benchmark Nifty 50 index declining 15.15 points, or 0.06 per cent, to 24,223.35. Despite the subdued market sentiment, TVS Motor share price gained 0.45 per cent to Rs 3,606.20, rising Rs 16.00, after the company announced the allotment of Rs 500 crore worth of Non-Convertible Debentures (NCDs) through a private placement.

TVS Motor Raises Rs 500 Crore Through NCDs

TVS Motor Company informed the stock exchanges that the Administrative Committee of Directors, authorised by the Board, approved the allotment of 50,000 Senior, Rated, Unsecured, Listed, Redeemable, Non-Convertible Debentures (NCDs) of face value Rs 1 lakh each, aggregating Rs 500 crore, following the successful bidding process on the NSE Electronic Bidding Platform (EBP), the allotment also included a premium of Rs 85,000 per debenture.

The allotment was approved through a circular resolution on July 17, 2026, after receipt of subscription proceeds from identified investors. The issuance has been made through a private placement and the debentures will be listed on the National Stock Exchange of India (NSE).

Key Terms of the Issue

The NCDs carry a coupon rate of 7.30 per cent per annum, payable annually. The debentures have a tenure of 36 months, with the date of allotment being July 17, 2026, and the maturity date fixed as July 17, 2029.

The first, second and third annual interest payments are scheduled for July 17, 2027, July 17, 2028, and July 17, 2029, respectively. The principal amount will also be redeemed on July 17, 2029, subject to any early redemption provisions specified in the issue terms.

Other Details

The company stated that the NCDs are senior, rated, unsecured, listed and redeemable, and no charge or security has been created over the company's assets for the issuance. There are no special rights or privileges attached to the debentures.

In the event of any delay in payment of interest or principal beyond the prescribed cure period, an additional 2 per cent per annum over the coupon rate will be payable on the outstanding principal amount until the default is rectified. The company also confirmed that there has been no cancellation or termination of the issuance proposal.

As of the June 2026 quarter, Domestic Institutional Investors (DIIs) increased their holding to 21.13 per cent from 18.84 per cent in the March 2026 quarter 
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About TVS Motor Company

TVS Motor Company Limited is one of India's leading two and three-wheeler manufacturers, offering a wide range of motorcycles, scooters, mopeds and electric vehicles. The company has a strong domestic presence and exports its products to more than 80 countries. It also operates in the premium motorcycle segment through Norton Motorcycles and continues to expand its presence in electric mobility through the TVS iQube platform.

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Disclaimer: The article is for informational purposes only and should not be construed as investment advice.