On Tuesday, TVS Motors in a stock exchange filing said that its board has approved the issuance of Non-Convertible Debentures (NCDs) to raise up to Rs 500 crore on a private placement basis.
In a separate announcement, Tata Motors also said that the company wants to offer "Rated, Listed, Unsecured, Redeemable, Non-Convertible Debentures aggregating Rs 1000 crores in three tranches," and it will hold a board committee meeting on 5 May regarding the same.
"The above issuance is pursuant to the approval of the Board of Directors' resolution passed at its meeting held on March 27, 2020," it said in its stock exchange filing.
Shares of TVS Motors were trading over 1.5 percent lower at Rs 294.60 in the afternoon session while Tata Motors was up by nearly 2 percent to Rs 76.55.
The auto sector, which was already hurt by the economic slowdown in 2019 has now under pressure due to measures taken to curb the spread of COVID-19.
It is likely that automakers made no sales in the month of April due to the nationwide lockdown. It is also for the first time ever that all automotive plants in India have been four straight weeks, straining their cash reserves.