Titan Co.'s board approved a proposal to raise up to Rs 2,500 crore through the issue of non-convertible debentures.
The board approved the proposal for raising of funds through issuance of rated, listed, redeemable, unsecured NCDs on a private placement basis, for an amount up to Rs 2,500 crore, it said in its exchange filing on Tuesday.
The Tata Group company's board also approved availing long-term borrowing in the form of long-term unsecured loans, up to a limit of Rs 1,000 crore from banks and financial institutions, the statement said.
The company authorised a committee of the board to take all actions in respect of the finalisation of terms of issuance and allotment of NCDs, it said.
The company announced the nomination of Arun Roy for the post of chairperson and additional director on the board of the company effective Tuesday, replacing S. Krishnan from the post.
Arun Roy will hold office as a director liable to retire by rotation, effective Oct. 17, and based on the approval of the shareholders as required, the statement said.
Roy is a 2003 batch IAS officer who has held key positions in various departments in the Government of Tamil Nadu. He is also on the board of several other investee companies of the Tamil Nadu government.
“I take this opportunity to thank all the directors of the board of Titan for the courtesy and cooperation extended to me during my tenure as chairman and director of this company,” Krishnan said.
The Tata Group company, in its second quarter update, said that it is expecting a 20% year-on-year growth in revenue for the three months till September, driven by its watches and wearables division.
"Building on the positive Q1 momentum, domestic consumer sales (secondary) exhibited strong year-on-year growth and were led by double-digit growth in buyers and ticket sizes," according to the company.
Shares of Titan closed 0.32% higher at Rs 3,312 apiece, as compared with a 0.40% advance in the benchmark Nifty 50 on Tuesday.
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