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Tata Capital Financial Services Limited NCD Review

Tata Capital Financial Services Limited NCD Review pic

As the registered non-banking financial company (NBFC) Tata Capital provides transparent financial solutions to its customers. Incorporated in the year 2007, the financial company has come a long way. Their services include various segments of business like Infrastructure Finance, Commercial Finance, Wealth Management, Consumer Loans, distribution and marketing of Tata cards. According to the present scenario, Tata Capital Financial has 100 branches altogether. However, this content is going to cover every minute detail regarding Tata Capital Financial Services Limited NCD Review along with issue details, company background both qualitative and quantitative.

About Tata Capital Financial Services Ltd NCD Issue Details

  • The issue opens on- Sep 10, 2018
  • The issue close on- Sep 21, 2018
  • Issue Type: Fixed Price Issue NCD
  • Face value: Rs. 1000 Per NCD
  • Issue size: NCD’s of Rs. 1000
  • Issue size: Rs. 7,500.00 Crore
  • Issue price: Rs. 1000 Per NCD
  • Market lot: 1 NCD
  • Listing At: BSE, NSE
  • Minimum order quantity: 10 NCD
  • DRHP: Click here

Purpose of Issuing NCD

  • Mainly for the purpose of lending, financing, payment purpose, NCD may issue.
  • To fulfill the general corporate objectives of the company.
  • It will help to enhance the brand name, corporate image.
  • The company wants to raise its fund without raising its share capital.
  • NCD has a higher interest rate in comparison to convertible debenture.

About Tata Capital Financial Services Limited

  • Tata capital financial; services limited is the subsidiary of Tata capital limited.
  • Their various range of products can be divided into two broad subdivisions, such as Corporate Finance and Consumer Finance.
  • Corporate Finance includes working capital loans, term loans. bill discounting, channel finance, construction equipment finance, leasing solution, lease rental discounting, structured products and promoter finance, etc.
  • Consumer Finance includes commercial vehicle loans, car, and two-wheeler loans, business loans, tractors loans, personal loans, loans against property, loans against securities, consumer durable loans, etc.
  • The company spread its network across 23 states with 134 offices.
  • Tata capital limited promotes the company.
  • The coupon rate that the company offers is ranging from 8.7%-9.10%. It depends on the tenures and the mode of interest payments are the yearly basis.

Products of the Company

Among the various products, the following are listed:

Commercial Finance

The commercial finance segment of Tata Capital Finance provides value-based as well as financial solutions for ecosystems. Hence, the financial solution is applicable for the entire large, medium, small and newly emerging companies both in corporate and public enterprises. Their tailored products and services help to manage, develop the business plans.
In commercial finance, products include:

  • Channel Finance
  • Purchase Order Funding
  • Working Capital Demand Loans
  • Sales Invoice Discounting/Bill Discounting
  • Flexi-Loans
  • SME Loans
  • Lease Rental Discounting
  • Purchase Invoice Discounting
  • Term Loans

Consumer Finance

The consumer finance under tata capital financial service provides a wide range of loans to various retail customers. The company offers loans for purposes like the expansion of business, equipment purchase, working capital loans. According to the date of March 31, 2018, consumer finance of tata capital constituted 43.57% of their total capital loans.

Consumer Finance products include the followings:

  • Consumer Vehicle Loans
  • Car and Two Wheeler Loans
  • Business Loans
  • Personal Loans
  • Consumer Durable Loans
  • Loans Against Property
  • Rural Finance
  • Tata Cards
  • Loans Against Security
  • Rural Finance
  • Tata Cards

Registered Office

11th Floor, Tower A, Peninsula Business Park.
Ganpatrao Kadam Marg, Lower Parel, Mumbai 400 013, State- Maharashtra, India

Company Management

The lead positions in company management are as follows:

Non-Executive Director

Mr. Rajiv Sabharwal
Mr. F. N. Subedar
Mr. M. D. Mallya

Independent Director

Mr. Mukund S. Dharmadhikari
Ms. Anuradha E. Thakur

Managing Director

Mr. Kusal Roy

About the Company’s Promoter

The main promoter Tata Capital Limited was registered as a public limited company under the companies act, 1956. The promoter company was under the name of “Primal Investments and Finance Limited”. TCL (Tata Capital) gained a certificate for Commencement of Business in the year 1991. In 2007, the company named was transformed into Tata Capital Limited.

Key Strength of the Company

  • A diversified and balanced mix of businesses
  • The integrated financial services platform
  • Robust internal processes and risk management framework
  • Widespread operational network
  • Synergy and parentage of Tata group
  • A strong and experienced management team
  • Widespread operational network

Business Strategies

  • Technology advantage
  • Consolidate their existing lines of business
  • Expand client base and geographical presence
  • Explore new business opportunities
  • Attain and retain talented professionals

Financial Statement

Now, come to the main segment of the article. In order to analyze Tata Capital Financial Services Limited NCD Review, the financial statement is a significant requirement. I have taken a screenshot of the company’s financial statement. The statement carries annual profit-loss records of the company. The statement is attached below:

Tata Capital Financial Services Limited NCD Review

Tata Capital Financial Services Limited NCD Review

Now, come to the main discussion, Tata Capital Financial Services Limited NCD Review. The above attachment is the previous five years profit-loss statement of the group. Have a look at the last financial year of the company 2017-18. Profit for the year counts at 48,258 which is much higher than the previous years. In order to analyze the statement, comparison of the previous year profit is necessary. The previous four years profit grew in an abrupt way.

Now, we will cover other information, taken from the prospectus of the company. The prospectus is named at the draft red herring prospectus. The prospectus contains each and every detail of the fundamental detail of the company. Have a look at the above financial attachment, EPS (Earnings Per Share) data is mentioned there. As per the financial year 2017-18, basic and diluted EPS stands at 2.90. Previous years EPS are lower than in the latest financial years. Apart from EPS, there are other ratios too, P/E ratio, NAV/Share, etc but these are not available in the prospectus. However, based on the available data, Tata Capital Financial Services Limited NCD Review carries a NEUTRAL view. Investors may take a chance but at their own risk.

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