Tata Motors offers 11% on fixed deposits

Tata Motors is offering upto 13.33% 11.5% interest, per year, on fixed deposits with the company. (Read the brochure)

All you need to do to be a shareholder is to buy one share - currently less than Rs. 200 - and get 0.5% more.

The major issue of course: Is Tata Motors going to be solvent? Going by how this stupid government is thinking of bailout a Satyam, I think it's a given that even Tata Motors is going to be bailed out. In Satyam they aren't even letting the shareholders go bust - usually bailouts protect debt holders, but here they're protecting those that took the risk!

Given this mentality it's likely Tata Motors won't be allowed to go bust, but if things get ugly money could be stuck for a while. The financials don't look very good, but that's true of everything. Comes down to trust. So if you like Ratan Tata - and most importantly, if he likes you - this might just be the "alpha" you're looking for.

Related posts:

1. Liquid Funds are better than Fixed Deposits The increase in Dividend Distribution Tax (DDT) in Budget 2006...
2. Tata Steel and the Corus buyout structure: Not Worth It Tata Steel (Tisco) revealed how it will fund the Corus...
3. Funny-mentals : Tata Steel I got a mail from Ninad today about how Tata...
4. Deposits flying to safety The lure of guaranteed deposits is here. First, Ireland guarantees...
5. ICICI Home Finance Offers 11.5% From Economic Times: ICICI Home Finance has launched a special...

This entry was posted on Tuesday, January 13th, 2009 at 7:28 AM and is filed under TataMotors. You can subscribe to any comments to this entry via RSS 2.0. You can leave a response, or trackback from your own site.