Description

Revision in cash flow schedule for NCDs of Tata Power Company Limited due to changes in coupon payment dates based on redemption business day convention.

Summary

BSE has issued an update regarding the debt securities (Non-Convertible Debentures) of The Tata Power Company Limited. The circular provides revised cash flow schedules for the NCDs, with changes to certain coupon payment dates. The modifications are being made to align with the redemption business day convention as specified in the Key Information Document (KID) and Information Memorandum.

Key Points

  • Revised cash flow schedule provided for NCDs with face value of Rs. 100,000 per NCD
  • 18 coupon payments scheduled from March 2024 to September 2032
  • Two partial redemptions scheduled on September 30, 2030 (reducing face value to Rs. 70,000) and September 31, 2031 (reducing to Rs. 40,000)
  • Final redemption scheduled on September 28, 2032
  • Changes implemented to align actual payment dates with redemption business day convention
  • Coupon periods range from 179 to 186 days
  • Day count basis follows actual/actual convention

Regulatory Changes

No new regulatory changes introduced. This is a technical correction to align cash flows with existing KID and Information Memorandum provisions regarding business day conventions for coupon payments.

Compliance Requirements

  • Investors and intermediaries should note the revised payment schedule for coupon payments
  • Updated cash flow schedule should be used for all future calculations and planning
  • Debenture trustees and paying agents must ensure payments are made as per revised schedule

Important Dates

  • Coupon payments: Semi-annual from March 28, 2024 to September 28, 2032
  • First Partial Redemption: September 27, 2030 (30% of face value)
  • Second Partial Redemption: September 26, 2031 (additional 30% of face value)
  • Final Redemption: September 28, 2032 (remaining 40% of face value)

Impact Assessment

Market Impact: Low to Medium - This is primarily an administrative update affecting NCD holders of Tata Power. The changes relate to specific payment dates being adjusted to comply with business day conventions, which may result in slight timing differences (typically 1-3 days) for certain coupon payments.

Investor Impact: Medium - Existing NCD holders should update their cash flow expectations and ensure their records reflect the revised payment schedule. The actual amounts and overall structure remain unchanged, only specific payment dates are adjusted to fall on business days as per convention.

Operational Impact: Low - Payment infrastructure and systems need to be updated with the revised schedule to ensure timely processing of coupon payments and redemptions.

Impact Justification

Technical update affecting NCD holders of Tata Power with revised coupon payment schedule. Impacts debt investors but changes are procedural based on KID convention.