TVS Motor Company raises Rs 500 crore through NCD allotment

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TVS Motor Company has successfully raised Rs 500 crore through the allotment of non-convertible debentures, reinforcing its financial stability and enabling strategic expansion initiatives.

Priya Thakur

Correspondent, Automotive & Mobility

Priya Thakur covers the intersection of mobility, policy, and automotive retail for a readership that spans enthusiasts and everyday buyers alike. A graduate in Mechanical Engineering from BITS Pilani, she brings an informed technical sensibility to her writing — whether she is decoding NCAP safety ratings or breaking down what a new emission standard means for the used-car market. Over the past seven years, Priya has tested SUVs, sedans, and two-wheelers across highway and urban conditions. She has interviewed senior executives at homegrown OEMs and international manufacturers, and her long-form features on India's EV infrastructure gap have been widely cited in the industry press.

By Priya Thakur

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Jul 21, 2026 06:08 am IST

Published On

Jul 21, 2026 05:00 am IST

Last Updated On

Jul 21, 2026 06:08 am IST

TVS Motor Company has raised Rs 500 crore by allotting non-convertible debentures (NCDs) through a private placement. The company disclosed this in a stock exchange filing on Monday. TVS Motor allotted 50,000 senior, rated, unsecured, listed, redeemable, non-convertible debentures. Each debenture has a face value of Rs 1 lakh, totalling Rs 500 crore.

Key Highlights

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TVS Motor Company raised Rs 500 crore through non-convertible debenture allotment.
Debentures have a 36-month tenure and 7.30 percent annual coupon rate.
Instruments are unsecured and listed on the National Stock Exchange of India.
Interest payments scheduled annually with principal redemption on July 17, 2029

Debenture Details and Terms

The debentures will be listed on the National Stock Exchange of India. They have a tenure of 36 months and will mature on July 17, 2029. The annual coupon rate is 7.30%, with interest paid once every year. Scheduled interest payments will occur on July 17, 2027, July 17, 2028, and July 17, 2029. The principal amount will be redeemed on the maturity date, unless early redemption provisions apply.

The instruments are unsecured, and no charge has been created over the company's assets. The filing also stated that no special rights or privileges are attached to these debentures. If there is a delay of more than three months in interest or principal payments, or a default in repayment, investors will receive an additional 2% per annum interest over the coupon rate. This extra interest applies to the outstanding principal from the end of the cure period until the default is resolved.

Allotment Process and Company Statement

The administrative committee of directors, acting under authority from the board, approved the allotment on July 17. This followed successful bidding on the National Stock Exchange's Electronic Bidding Platform. The allotment was finalised after identified investors remitted the subscription amount.

TVS Motor Company confirmed there were no comments regarding any delay or default in servicing the securities. The company also reported that there had been no cancellation or termination of the proposal for the issuance.

Industry Context and Future Outlook

Growth in the sector is expected to come from replacement demand. This follows the rationalisation of GST last year, which encouraged fleet operators to upgrade. The company is also expanding its manufacturing capabilities. A new facility will produce dual-market internal combustion engines under a regional licensing agreement. Additionally, TVS Motor is looking to expand its in-vehicle infotainment and cockpit domain controller offerings.

CarBike 360 Says

The successful Rs 500 crore fundraise through non-convertible debentures highlights TVS Motor Company’s strong financial strategy and investor confidence. This move is expected to support its expansion plans, product development, and operational efficiency. As the company continues to strengthen its market position, such financial initiatives will play a key role in sustaining long-term growth and competitiveness in the evolving automotive landscape.