Tata Motors rolls out Fixed Deposit scheme after rights issue fails
Tata Motors is finding it tough to refinance the $3 bn debt it took on at the time of acquiring Jaguar Land Rover, especially after the failure of their recent rights issue.
The company now plans to approach the public with a Fixed Deposit (FD) scheme to try and raise the necessary funds. As per the terms of the FD scheme, investors will get 10% for a 1 year deposit, 10.5% for 2 years, and 11% for 3 years, with senior citizens getting 0.5% more for each slab. Overall, Tata Motors plans to raise around Rs.1,932 crore through this FD scheme.
The minimum amount payable is Rs.20,000, with additional deposits being accepted in multiples of Rs.10,000. There are two plans: Quarterly Income Plan and a Cumulative Deposit Plan, both for a period ranging from 1-3 years. The company also has a recurring deposit plan, but only for employees.
Investors scarred by the upheaval in the stock markets can park their money here. Here is the link to the application form. (pdf)
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