History of Tata Finance Ltd.
1984
- The Comp. was incorporated as a private limited Comp. at Mumbai on 16th March 1984 & converted into a public Comp. on 26th April 1984. It was promoted by Tata Industries limited as a wholly owned subsidiary. It was primarily engaged in providing hire purchase for commercial vehicles plant & Machinery, equipments two wheelers and consumers durables.
- Transport & construction sectors are the major segments of the company business activities the Comp. also undertakes leasing of plant machinery to a limited extent mainly to corporate clients.
1990
- The Comp. proposed to diversify its activities by financing trade bills & engaging in money market operations. A Trade Finance Department was established.
- Authorised capital reclassified & equity shares subdivided. 25,10,000 No. of equity shares of Rs 10 each & 5,00,000 cumulative convertible preference shares of Rs 100 each were then issued at par of which 15,10,000 No. of equity shares & 4,00,000 preference shares were reserved & allotted to promoters directors, their friends, etc.
- Out of balance 10,00,000 No. of equity shares & 1,00,000 pref. shares, 1,25,500 No. of equity shares & 25,000 pref. shares were offered to employees [including Indian working directorss] of the Company [all were taken ups].
- The remaining 8,74,500 No. of equity shares & 75,000 preference shares were offered for public subscription during February 1991 [all were taken ups]. The equity shares were allotted on 30th March, 1991 and the preference shares on 8th April, 1991.
1991
- 19,20,000 No. of equity shares issued to the erstwhile Tata Industrial Finance Corporation.
1992
- The merger of Tata Industrial Finance Corporation Limited [TIFCOs] with the Comp. become effective on January 1st. - The Directors propose to issue 1,25,16,000 No. of Equity Shares of Rs.10/- each at a premium of Rs.40/- per share, aggregating Rs.6,258 lakhs on a Rights basis to the existing shareholders & others.
- Apart from expanding its existing lines, the Comp. proposes to diversify into newer areas of financial services & now has a network of branches throughout the country which it proposes to expand during the coming years.
- The fixed deposit scheme of Comp. was launched in August 1991, and as at March 31, 1992, the Comp. held deposits aggregating Rs.72 crores, inclusive of Rs.7.24 crores transferred from the erstwhile TIFCO.
- 1,29,29,700 No. of equity shares offered to the existing shareholders [prem. Rs 40s] in prop. 1:1. 5,85,615 shares were not taken up. Allowed to lapse.
1993
- As an interest reduction exercise, the Comp. made an issue of Commercial Paper to the extent of Rs.10 crores, which was rated by CRISIL as 'P1 +', which is the best rating for a short-term instrument. The CRISIL rating of FAA signifying 'High Safety' has been maintained during the year.
1994
- Tata Finance Securities limited was incorporated & later converted into a wholly owned subsidiary of Company. - During the course of year, the Comp. entered the field of finance for construction equipment & the Comp. proposes to expand into this field while keeping a close watch on the quality of its clients.
- During the year, the Comp. issued commercial paper to the extent of Rs.50 crores with stand-by arrangements from its bankers.
- The commercial paper was awarded a `P1+' rating by CRISIL which is the highest rating for short term instruments.
- The CRISIL rating of Comp. for fixed deposits improved from FAA to FAA+ during the year.
- The Comp. also opened a number of computerised front offices where the depositor can be provided services across-the-counter.
1995
- As per the terms of issue, each preference share of Rs 100 was converted into 10 equity shares of Rs 10 each at par at the end of three years from the date of allotment of preference shares.
- The Comp. established new branches in Chandigarh, Jaipur, Calcutta, Baroda, Vishakapatnam, Madurai, Vellore, Salem, Calicut & Cannanore and greatly improved its geographic coverage in the Northern, Western and Southern regions of Country.
- During the year, Tata Finance Securities Limited [TFSLs] was incorporated & later converted into a wholly owned subsidiary of the Company.
1996
- The Comp. has been fully complying with Reserve Bank of India Directions & Rules regarding maintenance of liquid assets on its portfolio of deposits.
1997
- Tata Finance is a non-banking financial Comp. engaged in the business of hire purchase, leasing & other finance related activities and also accepts fixed deposits from the public under its various deposit schemes.
- Six corporates, led by Tata Finance & Madras Cements, propose to access the commercial paper [CPs] market to raise Rs 245 crore. The Tata Finance will raise Rs 100 crore, Madras Cements Rs 56 crore.
- Effective from March, Telco Dealers Leasing & Finance Comp. was merged with Tata Finance.
1998
- Tata Finance has privately placed redeemable preference shares for Rs 45 crore with a tenure of three years & a coupon of 11 per cent.
- The Comp. also proposes to issue 59,21,000, 11 per cent CCPS of Rs 100 each aggregating Rs 59.21 crore on a preferential basis to FIIs, financial institutions, banks, NRIs & corporates on a private placement basis.
- Tata Engineering & Locomotive Comp. Ltd [Telcos] announced a tie-up with Tata Finance Ltd & ANZ Grindlays Banks as the official financiers for its small car 'Indica' to be launched in December.
- Tata Finance Rs 200 m & Rs 250 m NCD issues have been downgraded from 'AA+' to 'AA-', & fixed deposit programme from 'FAA+' to 'FAA', while the rating of Rs 1 bn commercial paper programme has been reaffirmed at 'P1'.
1999
- Tata Finance Limited, a leading NBFC, promoted by Tata Industries Limited is launching a rights issue of cumulative convertible performance shares [CCPs] of Rs 100/- each in the ratio of 1 CCP for 10 equity shares.
- Tata Finance, a Tata group company, has signed a memorandum of understanding [MoUs] with the Director General of Resettlement [DGRs] for extending financing schemes for commercial vehicles to ex-serviceman.
- Tata Finance & American Express [Amexs] are joining hands to set up a foreign exchange services company. The joint venture will also have two other Tata group companies, Indian Hotels & Tata International, as partners.
- Tata Mutual Fund also plans to launch two new schemes, Tata Life Sciences Sector Fund Tata Technology Sector Fund. Both these funds are open ended.
- Leading non-banking finance Comp. Tata Finance Ltd & American Express, the world largest travel related services company, announced plans to set up a joint venture Comp. for money changing/foreign exchange services in India. A letter of intent [LoIs] for this purpose has been signed between the two companies.
- Tata Finance Ltd is selling 49 per cent equity in its wholly owned subsidiary Tata Finance Securities Ltd to T D Waterhouse of Canada for Rs 67 crore.
- American Express has formed a joint venture with Tata Finance Limited [TFLs] to expand its foreign exchange operations in the Asia-Pacific countries. The newly formed tie-up, to be known as Tata Finance American Express [TFL-Amexs].
- Tata Finance Ltd, the 2,600 crore financial services arm of Tata group, has become the first non-banking finance Comp. [NBFCs] to enter badla financing in a focused manner.
2000
- Tata Finance plans to unlock the hidden value in its fully-owned investment subsidiary, Niskalp Investments and Trading Comp. [Niskalps], either through an equity flotation to the public or merging it with itself.
- Tata Finance is setting up a housing finance subsidiary Tata Home Finance in the first week of May. It will also set up a credit card subsidiary.
- Hero Honda Motors Ltd [HHMLs] & Tata Finance Ltd [TFLs] have signed a national tie-up agreement, under which the latter will be the preferred financier for complete range of Hero Honda motorcycles.
- Crisil has assigned high safety [AA-s] rating to the proposed Rs.150 crore non-convertible debenture [NCDs] issue of company.
- Nishkalp Investments & Trading Comp. Ltd, a subsidiary of Tata Finance Ltd, will acquire Tata Share Registry Ltd.
- The Comp. has tied-up with the manufacturers like Tata Engineering, Ford, Maruti, Hyundai, Daewoo, etc. Tata has organised Car-Mart, a one-stop shop for both Car & Finance, in Chennai.
- The Comp. has entered into a MoU with Abbey National Plc., UK, [ANPs] for an equity investment by Abbey National in Tata Homefinance limited [THLs], which is presently 100% subsidiary of company.
- Tata Homefinance Ltd., a subsidiary of Tata Finance has launched its operations from three locations in Mumbai. The branches are located in Dadar, Vashi & Fort.
- The Comp. has made the following issues on a private placement basis:
- [is] 33,00,000 No. of equity shares at a price of Rs 86/- per share, aggregating Rs 28.38 crores.
- [iis] 25,00,000 Cumulative Redeemable Preference Shares of Rs 100/- each aggregating Rs 25 crores.
- [iiis] 15,00,000 Cumulative Convertible Preference Shares of Rs 100/- each, aggregating Rs 15 corres & these shares were subsequently converted into 13,63,637 No. of equity shares at a price of Rs 110/- each.
- Tata Finance limited & the American Express Bank launched the Tata Finance American Express Credit Card for India.
- The Comp. proposes to expand its capital base by about Rs 200 crore post-issue.
2001
- The Comp. is to issue 35 lakh equity shares of Rs 10 each at a premium of Rs 65 per share.
- Tata Homefinace limited the housing finance subsidiary of Tata Finance Ltd., has tied up with Abbey National Plc, the UK premier mortgage bank.
-The foreign exchange services business of American Express in India has been acquired by Tata Finance AmEx Ltd in an all-cash deal for an undisclosed amount.
- Tata Finance Securities Ltd, a primary dealer in Government securities has been renamed `Tata TD Waterhouse Securities Ltd'. The change in the name of Comp. is consequent to a change in its ownership pattern.
- Tata Finance said that the services of five senior executives of the company have been terminated. They were involved in ``unauthorised financial transactions' along with the former managing director, Mr Dilip S. Pendse.
-2002
-Tata Finance Ltd has informed BSE that at the Board meeting held on July 09, 2002 Mr K A Chaukar resigned as Vice Chairman and Director of Comp. with effect from July 09, 2002.
-Tata Finance Ltd has informed BSE that at the Board meeting held on July 30, 2002, Mr Dinesh Vyas resigned as Director of company.
2003
-Dilip S Pendse, former Managing Director of Tata Finance Ltd, has been arrested for misappropriating Rs.2 cr from the company funds.
-Tata Finance Ltd has informed BSE that ICICI Bank Ltd, has purchased their credit card portfolio of company.
-Trading in 9% Cummulative Convertible Preference Shares series Q1 of Tata Finance Ltd shall be suspended.
-Tata Finance Ltd sells a building in Mumbai Fort for Rs.46 cr to the Allana group.
-CRISIL assigned AAA rating to three of Tata Finance Ltd senior pass through certificates worth Rs.228.9cr.
-Mr.N.A Soonawala has resigned from the board of directors of Tata Finance Ltd.
-Tata Finance Ltd has executed a Share Purchase Agreement with IDBI for sale of its entire equity shake in Tata Home Finance Ltd.
-ICRA has assigned LAA+ rating to the company proposed Rs.125cr Non-convertible Debentures.
-Tata Finance Ltd has completed the sale of its entire stake in Tata Home Finance Ltd to IDBI.
