The company officials said at a press meet, the public issue closes on February 24 or earlier or on such date as may be decided at the discretion of the Committee of Directors of Tata Capital subject to necessary approvals.

Govind Sanakaranarayanan, CFO of Tata Capital said, "We intend to expand the scale of our operations, explore new distribution channels and increase our reach and customer base both domestically and internationally. The focus is on expanding the scale of our operations to smaller Indian cities which we believe present attractive opportunities both in terms of clients and revenues."

The company announced that the interest at the rate of 12 per cent per annum is offered for the annual and cumulative interest payment options.

Quarterly interest payment option offers a coupon rate of 11.25 per cent per annum with an annualised yield of 11.73 per cent.

For the quarterly, annual and cumulative interest payment options, the minimum application size is Rs 10,000 and additional investments in multiples of Rs 1,000. Monthly interest payment option to offer a coupon rate of 11 per cent per annum with an annualised yield of 11.57 per cent.

The minimum application size is Rs 100,000 and additional in multiples of Rs. 100,000. Interest on application money at the rate of 8 per cent p.a. to be paid from the date of realisation of the cheque or five days after the date of application, whichever is later, upto one day prior to the deemed date of allotment.

Allotment to applicants will be on a first-come-first serve basis for each category of investor.

The net proceeds of the Issue is proposed to be used for the company's various financing activities including lending and investments, to repay existing loans and business operations including its capital expenditure and working capital requirements.

ICICI Securities Ltd, Citigroup Global Markets India Pvt Ltd and DSP Merrill Lynch Ltd are the Lead Managers to the Issue.