Tata Capital approves raising up to 360B rupees via debt

India's Tata Capital has approved a plan to raise up to 360 billion rupees ($4.35 billion) through a mix of debt instruments and bank lines in the current financial year, according to recent disclosures. This expansion of its fundraising target reflects the company's strategy to support its aggressive credit growth plans, which are expected to exceed 25% in assets under management (AUM). The company's liabilities are being diversified across bank funding, non-convertible debentures (NCDs), external commercial borrowing, and public debt instruments to ensure stability and flexibility.

Tata Capital, a subsidiary of Tata Sons, operates three non-banking finance company (NBFC) units and reported a consolidated loan book of 1.28 trillion rupees as of June 2025. The company has emphasized its focus on the retail segment, which is expected to account for 85% of its lending, while maintaining a cautious approach to corporate lending by prioritizing higher-rated borrowers and avoiding large exposures.

The fundraising will include green bonds to support sustainable projects such as renewable energy and clean transportation. Additionally, Tata Capital plans to issue secured redeemable NCDs and expand its wealth management and education financing businesses. The company is also preparing for a public listing by September 2026, which is expected to strengthen its capital base and reduce its debt burden.