Tata Chemical shares rise 1.3% on plan to raise ₹1,700 cr

Tata Chemicals shares gained up to 1.3% to ₹1,067.95 in morning trade today on the NSE after the company received approval for the allotment of 1.7 lakh non-convertible debentures (NCDs) on a private placement basis. The issue of these NCDs is set to raise nearly ₹1,700 crore, with the terms finalised by an internal board committee.

The company's shares opened at ₹1,053.95 and climbed to an intraday high of ₹1,067.95 on the NSE during morning trade. Currently, the stock is trading at ₹1,064.35, up 0.44% from the previous close.

In a regulatory filing on August 20, the company informed that the committee had approved the issue of listed, unsecured, rated, redeemable, taxable, non-cumulative, non-convertible debentures to identified investors. These debentures, with a face value of ₹1 lakh each, will have a tenor of three years.

The debentures are expected to have a fixed coupon rate of 7.81% and will be allocated using a multiple-yield allotment method. These NCDs will be listed on the Debt segment of the NSE.

Tata Chemicals is a key supplier to the glass, detergent, and chemical industries, and has a presence in the crop protection sector through its subsidiary, Rallis India.

The company's consolidated net profit from continuing operations dropped by almost 70%, totalling ₹175 crore in the first quarter of this fiscal, down from ₹578 crore in the same quarter last year. Revenue from operations also saw a year-on-year decline of 10.17%, amounting to ₹3,789 crore for the quarter ending June 30, 2024.