Tata Capital slips 1.25% after NCD-fuelled rally

Tata Capital shares fell 1.25% to ₹362.20 by 10.55 am Monday, giving back some of Friday's 6.18% surge. Sell orders accounted for 68.9% of total traded quantity, exchange data showed. The stock had touched a 52-week high of ₹379.95 on June 19.

Friday's rally came after the board approved raising up to ₹36,000 crore through non-convertible debentures (NCDs) on a private placement basis, subject to shareholder approval. The board met on June 17.

The fundraise may span secured, unsecured, subordinated, and perpetual debt instruments, as well as green bonds, the company said in an exchange filing. The company will finalise interest rate and tenor after shareholder approval.

Tata Capital, the financial services arm of the Tata Group, listed on exchanges in October 2025. Promoters hold 85.41% of shares as of March 2026. Foreign and domestic institutional investors own 4.88% and 3.60% respectively. Free-float market cap stands at ₹15,595 crore.

The debt issuance avoids equity dilution at a time when NBFC funding costs remain elevated. If fully deployed, the ₹36,000 crore could expand the loan book by roughly 25% based on current equity base, the exchange filing showed. That would test asset quality while growing.

Year to date, Tata Capital has returned 6.39%, ahead of the Nifty Next 50's 4.16%. The stock's free-float is about 12% of total market cap, making it relatively tightly held.