The board of Titan has approved raising up to Rs 2,500 crore through NCDs (non-convertible debentures) on a private placement basis.
“The Board of Directors reviewed and approved the proposal for raising of funds through issuance of rated, listed, redeemable, unsecured NCDs on private placement basis, for an amount up to Rs 2,500 crore,” the company said in a filing.
A committee was authorised to take all actions in respect of finalisation of terms of issuance and allotment of NCDs.
Further, the Board has also approved a proposal for availing long-term borrowings in the form of long-term unsecured loans up to a limit of Rs 1,000 crore from banking institutions.
Titan shares have had a decent run this year with a gain of about 29%. The gems and jewellery stock hit a record high of Rs 3351 in mid-September, but quickly pared gains and went under price correction.
Analysts are bullish on the stock and recommended a buy with an upside target of Rs 3630. “The stop loss can be kept at Rs 3120 on a closing basis,” said Vaishali Parekh, Vice President – Technical Research, Prabhudas Lilladher.
Titan Co has clocked 20% year-on-year growth in revenues for the second quarter ended September. A total of 81 stores were added in this period, taking the group’s retail presence to 2,859 stores.
In the jewellery segment, 19% revenue growth was led by 20% growth in the domestic business and lower primary outgo from India to the international entities (driven by periodic inventory realignment).
The jewellery division saw 37 new store additions in India in this quarterly period, out of which 10 were in Tanishq, 26 in Mia by Tanishq and 1 store in Zoya.
The watches and wearables (W&W) division clocked domestic business growth of 32% YoY comprising 22% growth in the analog watches and 131% growth in Wearables.
On Monday, the company’s shares closed 0.32% higher at Rs 3,312 on NSE.
