Tata Capital Financial Service is the unlisted subsidiary of Tata Capital which is planning to raise Rs 11,500 crore as debt to bolster its lending book that touched Rs 75,806 crore in FY21.

The BOD of Tata Capital Financial Services will be meeting on September 6 to clear the issue. They fundraise by Tata Capital Financial Services comes within weeks of Tata Sons, the holding company of the Tata group, informing its shareholders that it plans to raise to Rs 40,000 crore as debt in the coming months, according to media reported.

The fundraising by Tata Capital Financial Services comes just before the festival season when the company is expecting a substantial rise in demand for loans from its retail and corporate customers. Bankers said the funding costs for high-rated NBFCs like Tata Financial Services have come down significantly. With the retail borrowers splurging on two-wheelers, passenger vehicles, and taking personal loans, the demand for Tata Capital Financial Services products would increase. Its products are also expected to be sold through the Tata Super App planned by the Tata group.

Also, Tata Sons have already infused Rs 3,500 crore in Tata Capital Group in the last two financial years to meet its financial liabilities. Tata Sons holds a 95 per cent stake in Tata Capital, which, in turn, contains the entire equity of Tata Capital Financial Services.