Description

Revision of coupon payment dates and cash flow schedule for NCDs of Tata Power Company Limited due to business day convention adjustments.

Summary

BSE has issued an update regarding the debt securities of The Tata Power Company Limited, detailing revisions to the coupon payment schedule for Non-Convertible Debentures (NCDs). The changes are being implemented to align with the business day convention as specified in the Key Information Document (KID) and Information Memorandum.

Key Points

  • Coupon payment dates have been revised for certain periods due to business day convention requirements
  • Face value per NCD is Rs. 100,000 (reducing to Rs. 70,000 after first partial redemption, then Rs. 40,000 after second partial redemption)
  • Total of 18 coupon payments scheduled from March 2024 to September 2032
  • Two partial redemptions planned at 14th and 16th coupon dates (September 2030 and September 2031)
  • Final redemption scheduled for September 28, 2032
  • Coupon periods range from 179 to 186 days
  • Day count basis adjusts between 365 and 366 days based on leap years

Regulatory Changes

The revision aligns payment dates with the redemption business day convention as per the Key Information Document. Specific changes include:

  • 14th Coupon: Actual payment date changed from September 30, 2030 (Monday) to September 27, 2030 (Friday)
  • 15th Coupon: Payment date remains September 27, 2030 (Friday) with adjusted coupon period days from 182 to 183
  • 16th Coupon: Actual payment date changed from September 29, 2031 (Monday) to September 26, 2031 (Friday)
  • 17th Coupon: Payment date remains September 26, 2031 (Friday) with adjusted parameters

Compliance Requirements

  • Investors and intermediaries should note the revised payment schedule for cash flow planning
  • Updated cash flow schedules must be incorporated into investor records
  • Payment processing systems should reflect the corrected business day conventions

Important Dates

Key Payment Milestones:

  • First Partial Redemption: September 27, 2030 (30% redemption - face value reduces to Rs. 70,000)
  • Second Partial Redemption: September 26, 2031 (additional reduction - face value becomes Rs. 40,000)
  • Final Redemption: September 28, 2032

Modified Coupon Dates:

  • 14th & 15th Coupon: September 27, 2030 (changed from September 30, 2030)
  • 16th & 17th Coupon: September 26, 2031 (changed from September 29, 2031)

Impact Assessment

Market Impact: Low to Medium - This is a technical adjustment to ensure compliance with stated conventions rather than a material change to terms.

Investor Impact: Medium - NCD holders need to update their expected cash flow schedules. The changes affect timing of payments by 1-3 days for specific coupon periods, which may impact liquidity planning for institutional investors.

Operational Impact: Existing and revised cash flow schedules have been provided for transparency, ensuring investors can reconcile their records with the corrected payment timeline.

Impact Justification

Technical update affecting payment schedules for NCD holders of Tata Power; impacts bondholders' cash flow planning but does not change fundamental terms