Tata Chemicals Plans to Raise Rs 1,000 Crore via Debentures

Tata Chemicals has sought shareholders nod to raise up to Rs 1,000 crore from private placement of non-convertible debentures for general corporate purposes.

According to the agenda for the company's AGM (annual general meeting) scheduled for August 21, Tata Chemicals has moved a special resolution for authorizing its Board to raise up to Rs 1,000 crore via debentures.

"The approval of shareholders members be and is hereby accorded to authorize the board of directors of the Company ('the Board') to offer or invite subscriptions for Redeemable Non-Convertible Debentures, in one or more tranches, such that aggregate amount does not exceed Rs 1,000 crore on private placement...," as per the agenda of AGM meeting.

Elaborating the rationale behind moving such resolution, Tata Group firm said it will raise the amount for augmentation of long term resources.

The agenda noted added: "In order to augment the long term resources for financing and for general corporate purposes, the Company may offer or invite subscriptions for Nonconvertible Debentures in one or more tranches on private placement, issuable/redeemable at par."

The company has also moved a resolution for the approval of the borrowing limits to up to Rs 5,500 crore.

In another resolution, it has also sought shareholders nod for reappointment of R Mukundan as managing director of the company for five years till November 25, 2018, including remuneration and other terms of the employment.

Meanwhile board has already approved the reappointment of Mukundan as the company's managing director.

In five different resolutions, the company has also sought shareholders nod for reappointment of Nusli Wadia, Vijay Kelkar, Nasser Munjee, Eknath Kshirsagar and Y S P Thorat as independent directors of the company.

Tata Chemical's first quarter earnings of the current fiscal 2014-15 are scheduled for August 5.