TATA Capital was come up with their NCD issue in Feb 2009 and NCDs were alloted on 06th March 2009.Highest rate of interest offered by the issue was 12% compounded per annum.
There was a put option as well call option for the company after completion of 36 months of the issue. As interest rates offered are higher than todays surrounding environment , company has decided to offer revised interest rates,if not agreed then investors can exercise put option and exit from the NCDs with principal and accumulated interest (if any) as on the date.
Now new proposed interest rates are as follows:
| Option | Interest Frequency | Existing Coupon rate(per annum) | Proposed Coupon Rate(per annum) | Proposed rates applicable from |
| I | Monthly | 11% | 9.75% | March 06, 2012 |
| II | Quarterly | 11.25% | 09.75% | Sept 06,2012 |
| III | Annual | 12% | 10.50% | March 06,2012 |
| IV | Cumulative | 12% Compd annually | 10.50% Compd annually | March 06,2012 |
What options NCD Holders Have:
- If NCD holder is agree with new revised interest rates then they need to communicate it with writing between 05th March 2012 to 03rd April 2012 for options I,III and IV and Sept 05, 2012 to Oct 04, 2012 for option II.
- Forms for consent or Put option will be send by the issures and more details will be available with it.
- If NCD holder do not provide his consent for revised rates nor provide put option then company will exercise Call Option and redeem the NCDs within 90 days from completion of tenure of 3 yrs from date of allotment.
Should NCD Holders Continue:
Suggestion will be of course to continue with the new rates as I do not find any instrument which can offer you better than this.Finally individual need to take the final decision based on his/her individual needs,isn’t it?
Please Note:
This is not a new issue,its offer only for existing NCD holders of Tata capital which were issued in March 2009.
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I had invested in NCD in 2009. I continue to hold them and have been receiving Interest Quarterly. My Bankers are SBI, Chennai.
Recently after SBI merged it associates with their Bank, My Account No has changed. I will receive the interest on my MNCD on 1st December, 2016. The change in Account no was done by SBI and I have no choice. Since the documentation of Changing the Bank Account no, Receiving cheque Book etc., will take quite some time is it possible to give a Cheque for the NCD Interest Due on 1st December 2016. Is there any form that I need to fill in, do inform me.
I have invested in TATA Capital NCD. I have recd. annual interest cheque. I have not yet received form which has to be filled for PUT Option or Call option. Even i did not received letter to get consent of NCD holders but company is mentioning resolution was passed unanimously. Consent should reach upto 3rd april then letter should reach to us till date.
e-mail id not given in last letters received. However i will try to contact.
Better to contact them…if you want to continue
sirs,
I am waiting for your intimation with necessary forms for redeeming the NCd’s of tata capital.It was earlier intimated that a communication would be sent to all NCD holders after the NCD holders’ meeting scheduled to take place on 15th Feb 2012 .Now that that date is over,I would like to know the decisions taken at the meeting and if we have any new options left,in case we are not convinced of the reduction of the interst rates.Pl mail to me back on the current status,as the date 5th march is only a week away from now.Thanks-P.srinivasulu
Sir,
This is mere informational blog.
You need to communicate with Tata Capital if you have any queries.
One can send the consent until 03rd April so don’t think any reason of hurry.