Tata Chemicals Raises Rs 1,700 Crore via Non-convertible Debentures

Tata Chemicals has secured Rs 1,700 crore by issuing Non-convertible Debentures (NCDs) on a private placement basis. The NCDs have a fixed coupon of 7.81% and are listed on the NSE Debt Segment. The company recently reported a 72% decline in net profit for the first quarter of this fiscal year.

Tata Chemicals has successfully raised Rs 1,700 crore through the issuance of Non-convertible Debentures (NCDs) to investors on a private placement basis. This disclosure was made in a regulatory filing on Tuesday.

The internal committee, constituted by Tata Chemicals' board, sanctioned the allotment of 1,70,000 NCDs, with each having a face value of Rs 1 lakh. These debentures, with a tenor of 3 years, amassed a total of Rs 1,700 crore and were given to identified investors using a multiple yield allotment method, carrying a fixed rate coupon of 7.81%. They will be listed on the Debt Segment of the National Stock Exchange of India Limited (NSE).

In the latest financial results, Tata Chemicals reported a steep 72% drop in consolidated net profit, tallying Rs 150 crore for the first quarter of the current fiscal year, compared to Rs 532 crore in the previous year's corresponding period. Net profit from continuing operations fell to Rs 175 crore, whereas total income diminished to Rs 3,836 crore from Rs 4,267 crore. Additionally, total expenses rose to Rs 3,621 crore during the review period. Despite these financial challenges, Tata Chemicals remains a pivotal part of the USD 165 billion Tata Group and sustains a formidable presence in various industrial sectors, including crop protection through its subsidiary Rallis India Limited.

(With inputs from agencies.)