Tata Chemicals proposes to raise Rs1,000 crore via debentures

Tata Chemicals proposes to raise up to Rs1,000 crore through private placement of non-convertible debentures for general corporate purposes.

The company has moved a special resolution for authorising its board to raise up to Rs1,000 crore via debentures, as per the agenda for the company's AGM (annual general meeting) scheduled for 21 August.

"The approval of shareholders members be and is hereby accorded to authorise the board of directors of the company to offer or invite subscriptions for redeemable non-convertible debentures, in one or more tranches, such that aggregate amount does not exceed Rs1,000 crore on private placement...," the agenda of AGM reads.

The Tata Group firm said the funds so raised will be used to augment its long-term resources, but did not specify how the amount will be used.

"In order to augment the long-term resources for financing and for general corporate purposes, the company may offer or invite subscriptions for non-convertible debentures in one or more tranches on private placement, issuable / redeemable at par," it adds.

The company has also moved a resolution for seeking shareholders' approval for raising borrowing limits to Rs5,500 crore.

Besides, the company is seeking shareholders' nod for reappointment of R Mukundan as managing director of the company for five years till 25 November 2018, as also the remuneration and other terms of employment.

The 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 will announce its first quarter earnings for the current fiscal (2014-15) on 15 August.