Page 12 - BANKING FINANCE MARCH 2024

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Tata Capital to raise Rs. ing momentum, Tata Sons invested Rs will see a price reduction of up to Rs
1,000 crore in the first half of the cur- 70,000 with the base model now priced
20K crore to boost core
rent fiscal year (FY24) by subscribing to at Rs 8 lakh. Tata said it is passing on
lending biz the rights issue of equity of TCL. This "battery price reduction benefits" to

Tata Capital Limited's (TCL's) board has followed an infusion of Rs 500 crore customers. "Battery costs constitute a
greenlit a fundraising exercise of Rs during FY23. Previously, Tata Sons in- substantial part of the overall cost of
20,000 crore through non-convertible vested Rs 1,000 crore in FY20, and Rs an EV," said Vivek Srivatsa, chief com-
debentures (NCDs). This capital will be 2,500 crore in FY190. The group has mercial officer of Tata's passenger car
channelled into the company's core earmarked financial services as a core electric mobility division.
lending business and is separate from business, supporting it with fund infu-
the Rs 8,000 crore fundraising plan of sion and intra-group business. Govt raises FCI capital
its home finance subsidiary, Tata Capi- from Rs. 10,000 crore to
tal Housing Finance.
EV prices nearly on par Rs. 21,000 crore
Tata Capital, a subsidiary of Tata Sons
Private Limited, the holding company with petrol & diesel The government has increased the
of the Tata group, currently encom- It's widely believed that electric cars authorised capital of state-run Food
passes Tata Capital Housing Finance, are prohibitively expensive to buy. But Corporation of India (FCI) from Rs
Tata Securities, and Tata Capital Pte perception may not be keeping pace 10,000 crore to Rs 21,000 crore to
Singapore and its subsidiaries. The de- with reality. After recent cuts by mak- enhance the operational capabilities
bentures will be issued on a private ers such as Tata Motors and MG Mo- and fulfil its mandate effectively, the
placement basis once Tata Sons ap- tor, you may well recover any addi- Food Ministry said.
proves the fundraising plan, with the tional price paid for buying an EV in FCI is the central government's nodal
option for Tata Capital to raise the well under one year, especially as the agency that undertakes procurement
funds in one or more tranches. greens already throw in the lowest of foodgrains at a minimum support
Among major bond issuances by Indian running cost per km, apart from price (MSP) to protect the interest of
companies, according to Bloomberg subsidised registration charges. farmers. It also maintains strategic
data, HDFC Bank tops the leaderboard; Tata Motors, the country's largest elec- stocks and distributes the grains under
it had raised Rs 25,000 crore in Febru- tric car seller, announced deep cuts to different welfare schemes.
ary last year. Piramal Housing Finance
prices of electric versions of Nexon SUV ''The increase in authorized capital is
had raised Rs 20,455 crore in August
and Tiago mini. While the steepest a significant step towards enhancing
2016, while Reliance raised Rs 20,000 reduction of Rs 1.2 lakh has been made the operational capabilities of FCI in
crore via bonds in November 2023.
on the Nexon EV (entry variant priced fulfilling its mandate effectively,'' the
With the financial services sector gain- at Rs 14.5 lakh, ex-showroom), Tiago ministry said in a statement.

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