Tata Chemicals Raises ₹1,700 Cr Through NCDs On Private Placement Basis

Tata Chemicals has raised ₹1,700 crore by issuing Non-convertible Debentures (NCDs) to investors through a private placement.

In a regulatory filing on August 20, 2024, Tata Chemicals stated that a board-appointed internal committee approved the allotment of 1,70,000 NCDs, each with a face value of ₹1 lakh, for a total of ₹1,700 crore. These NCDs have a 3-year tenor and were allocated to specific investors on a private placement basis.

The NCDs carried a fixed interest rate of 7.81% and were issued using a multiple-yield allotment method. According to the filing, these NCDs will be listed on the Debt Segment of the National Stock Exchange of India Limited (NSE).

Financial Highlights

Tata Chemicals recently reported a 72% drop in its consolidated net profit, which fell to ₹150 crore for the first quarter of this fiscal year due to lower income and higher expenses. In the same period last year, the company’s net profit was ₹532 crore. Continuing operations’ profits also decreased to ₹175 crore, down from ₹578 crore. Total income for the April-June 2024-25 period fell to ₹3,836 crore compared to ₹4,267 crore in the same quarter of the previous year, as per a regulatory filing. Total expenses rose to ₹3,621 crore during the period under review, up from ₹3,527 crore.

About Tata Chemicals

Founded in 1939, Tata Chemicals Limited (TCL) is a major producer of inorganic chemicals in India. Their main business is making soda ash, an important ingredient for industries such as glass, detergents, and chemicals. TCL also produces fertilisers for agriculture, as well as industrial salts and bio-products. The company is known for its focus on operational excellence, safety, and environmental sustainability. TCL is the largest soda ash producer in India and is recognised for using innovative production methods and winning awards for environmental care. Additionally, TCL supports community development through programs in education, healthcare, and skill-building in the areas where they operate.

On August 21, 2024, the share price of Tata Chemicals Ltd opened at ₹1,053.95, touching the day’s high of ₹1,067.95 as of 10:25 AM on NSE.

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