Tata Motors on Wednesday raised Rs 1,000 crore through non-convertible debentures (NCD) at a coupon rate of 8.8 per cent per annum.

The homegrown auto major had earlier withdrawn the NCD issue for Rs 1,000 crore because of the tight market conditions. Tata Motors, which had planned to raise the money on a private placement basis, had then cited tight money market conditions as the principal reason for the move. Subsequently, it had revived plans for the debt issue as yields have softened recently.

In a regulatory filing to the stock exchanges, Tata Motors said it has mobilised Rs 1,000 crore via secured, redeemable non-convertible debentures (NCDs) of face value of Rs 10 lakh. The bonds, which will be listed on the BSE and NSE, will be of a three-year tenure. They were rated AA- with negative outlook by Crisil.

Shares of Tata Motors ended with gains of 2.02 per cent at Rs 83.45 on Wednesday.

Tata Motors' success amid the current circumstances should come as a relief to similarly rated companies as they have been facing difficulties in mobilising funds from the debt market. Investors have largely been preferring AAA rated firms or PSU entities. Tata Motors had recently announced that it has begun a calibrated restart of manufacturing operations for both commercial and passenger vehicles from its plants located at Pantnagar (Uttarakhand) and Sanand (Gujarat). The plants in Lucknow, Dharwad, Jamshedpur and Pune (only for ambulance) will begin production over the next few days..