Lifestyle major Titan Company Ltd on Tuesday said its board of directors has approved a proposal for the raising of ₹2,500 crore via non-convertible debentures (NCDs). Shares of Titan Company closed 0.14% or 4.55 points up at ₹3,304.65 on the Bombay Stock Exchange (BSE) today.

"The Board of Directors, at the Meeting held today, reviewed and approved the proposal for raising of funds through issuance of rated, listed, redeemable, unsecured Non-Convertible Debentures (NCDs) on private placement basis, for an amount up to ₹2,500 crore," Titan Company says in a statement.

The Titan board has also approved availing of long-term borrowings in the form of long-term unsecured loans up to a limit of ₹1,000 crore from banks or financial institutions.

The company also authorised its board committee to finalise the terms of issuance and the allotment of NCDs. The Tata Group company, in its quarterly update this month, says it registered revenue growth of 20% YoY in Q2 FY24. The company adds a total of 81 stores in the said quarter, taking its retail presence to 2,859 stores. 

Among its divisions, Titan Company says the jewellery division’s 19% YoY revenue growth was led by 20% growth in the domestic business and lower primary outgo from India to the international entities. 

The watches & wearables segment grew 32% YoY, comprising 22% growth in analog watches and 131% growth in wearables. "Analog watches growth was powered by healthy consumer sales in the mid to premium watches segment," said Titan.

Its EyeCare division saw sales growth of 12% YoY, as international brands grew faster as compared to house brands. Its emerging business, fragrances, and fashion accessories sales surged 4% on a year-on-year basis. CaratLane sales grew 45% YoY, led by equal growth in studded sales, new collections, gifting campaigns, and ‘old gold’ exchange program initiatives during the quarter.

Separately, the Titan board also took note of the resignation of S Krishnan, IAS, nominee of its co-promoter Tamilnadu Industrial Development Corporation Ltd (TIDCO) as a director of the company, with immediate effect. The board appointed Arnn Roy, IAS, secretary, Industries Investment Promotion and Commerce Department, Tamil Nadu, as chairman and additional director on the TIDCO board in place of Krishnan.

"Arnn Roy will hold office as a director liable to retire by rotation, effective 17th October 2023, and the approval of the shareholders as required under the Listing Regulations would be obtained within the period prescribed under the SEBI Regulations," says Titan.

Titan recorded consolidated revenue growth of 21% at ₹11,070 crore in Q1 FY24 as compared to ₹9,131 crore revenue in Q1 FY23. Its net profit was ₹756 crore, down 4% YoY, as compared to ₹790 in the year-ago period.

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