News ArticleTata Capital Limited Proposes Rs. 4,650 Crore Related Party Transactions with Tata Motors for FY 2026-27
Shareholders to vote via remote e-voting from November 6 to December 5, 2026, on finance and lease deals with Tata Motors
Tata Capital Limited has issued a postal ballot notice seeking equity shareholders' approval for material related party transactions with Tata Motors Limited. The transactions, including finance facilities and lease arrangements, are proposed for an aggregate value up to Rs. 4,650 crore during the fiscal year 2026-27, conducted at arm's length and in the ordinary course of business.
Tata Capital Limited
Preferential Issue
Tata Capital Limited has initiated a postal ballot seeking the approval of its equity shareholders for entering into material related party transactions with Tata Motors Limited valued up to Rs. 4,650 crore for the fiscal year 2026-27.
The proposed transactions cover finance facilities such as term loans, leasing, factoring, assignment of negotiable instruments and receivables, operating leases generating rental income, purchase of fixed assets for lease financing, commission income, and rent expenses.
These transactions are to be carried out at arm's length and in the ordinary course of business, complying with SEBI Listing Regulations and Companies Act provisions.
The postal ballot voting will be conducted electronically, facilitated by the National Securities Depository Limited, starting from 9:00 a.m. IST on November 6, 2026, until 5:00 p.m. IST on December 5, 2026.
The notice and explanatory statement outlining the material facts regarding the related party transactions have been sent electronically to eligible members and are also available on Tata Capital's website.
Highlights
- Material related party transactions proposed between Tata Capital Limited and Tata Motors Limited for FY 2026-27.
- Aggregate transaction value capped at Rs. 4,650 crore.
- Transactions include finance facilities, operating lease income, fixed asset purchases, commissions, and rent.
- Shareholders to approve via remote e-voting from November 6 to December 5, 2026.
- Transactions will comply with SEBI regulations and be conducted at arm’s length.
- Notice of postal ballot sent electronically to shareholders registered as of October 30, 2026.
Key Data Snapshot
What happened
- Tata Capital Limited issued a notice for a postal ballot to approve material related party transactions with Tata Motors Limited.
- The transactions include various financial arrangements such as term loans, leasing, factoring, and operating leases.
- The total value of these transactions may reach up to Rs. 4,650 crore in the fiscal year 2026-27.
- Shareholders are invited to vote electronically between November 6 and December 5, 2026.
Key details
- The transactions will be conducted at arm's length and in the ordinary course of business.
- Tata Motors Limited is an associate company and related party under SEBI Listing Regulations due to common promoter ownership (Tata Sons Private Limited).
- The Board of Directors is authorized to finalize terms, execute necessary documents, and delegate powers to officers for the execution of these transactions.
- The postal ballot and voting instructions have been disseminated electronically as per the Ministry of Corporate Affairs circulars.
Regulatory and governance context
- The approval process complies with Companies Act, 2013 (Sections 108, 110, 102), SEBI Listing Obligations and Disclosure Requirements Regulations, 2015, and related MCA circulars.
- Voting is restricted to remote e-voting to ensure compliance with applicable rules and guidelines for shareholder meetings.
- The notice and explanatory statement provide details on the nature and rationale of the related party transactions in line with regulatory requirements.
Highlights
- Material related party transactions proposed between Tata Capital Limited and Tata Motors Limited for FY 2026-27.
- Aggregate transaction value capped at Rs. 4,650 crore.
- Transactions include finance facilities, operating lease income, fixed asset purchases, commissions, and rent.
- Shareholders to approve via remote e-voting from November 6 to December 5, 2026.
- Transactions will comply with SEBI regulations and be conducted at arm’s length.
- Notice of postal ballot sent electronically to shareholders registered as of October 30, 2026.
Disclosures
- Companies Act, 2013 Sections 102, 108, 110
- SEBI Listing Obligations and Disclosure Requirements Regulations, 2015
- MCA General Circular Nos. 14/2020, 17/2020, 3/2025
Transactions involve Tata Motors Limited, an associate company and related party under Regulation 2(1)(zb) of SEBI Listing Regulations.
Tata Motors Limited is an associate company of Tata Sons Private Limited, the promoter of Tata Capital Limited.
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