Tata bonds or NCD issue of Tata Capital

The fall in the financial performance of most of the companies, the pledging of shares and indications that the group was undergoing major liquidity crunch, all have obviously impacted the Tata group stocks negatively. The stocks, expect for maybe TCS have constantly been on the sellers list.
And in the midst of all this, the group company Tata Capital announced its NCD issue. All raised their eyebrows in surprise and wondered whether there would be any subscribers at all. The rights issue of Tata Motors was too fresh in the mind to be put off. Yet, the Tata Capital NCD issue has managed to get oversubscribed 6 times, receiving bids worth more than Rs 3,000 crore on robust response from all categories of investors. The company would retain subscriptions worth Rs 1,500 crore from the issue and it would listed on the NSE.
This indicates two things – people still have a lot of faith in the name of Tata. And secondly, it is equity in which people seem to have lost faith in. Bonds have become an instrument of choice for investors and it would be no doubt that the success of the NCD issue of Tata Capital would now prompt other companies to come out with similar issues. thanks