Titan Company's board approves fundraising of up to Rs 2,500 crore; shares trade in green

Shares of Titan Company traded in the green on Tuesday, October 17, after the company's board approved a proposal for raising funds. The watchmaker received approval to raise up to Rs 2,500 crore through the issuance of rated, listed, redeemable, and unsecured non-convertible debentures (NCDs).

Shares of Titan Company closed at Rs 3,304.65 apiece, up 0.14 per cent or Rs 4.55. The stock traded in the green for the second session in a row, and the market capitalisation of the company stood at Rs 2,93,382.25 crore.

"The Board of Directors, at the meeting held today, reviewed and approved the proposal for raising funds through the issuance of rated, listed, redeemable, and unsecured non-convertible debentures (NCDs) on a private placement basis for an amount up to Rs 2,500 crore," the regulatory filing read.

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

Titan Company Q2 business update

Titan Company is expecting a 20 per cent year-on-year growth in revenue for the three months until September, driven by its watches and wearables division, as online retailers stock up in anticipation of a robust festive season.

The watches and wearables division grew 32 per cent over the previous year, with analogue watches growing 22 per cent and wearables growing 131 per cent, the Tata Group company said in its business update file.

Titan and international brands were major contributors, registering healthy double-digit growth. E-commerce sales more than doubled as the partners stocked up in anticipation of strong third-quarter holiday sales, Titan said. The near 2.5 times growth in the wearables category on a year-on-year (YoY) basis propelled the segment’s share to the mid-teens in the portfolio.

Titan share price: Past performance 

Since January, shares of Titan have gained 29 per cent and outperformed the Nifty50's rise of nearly 9 per cent.

Catch latest stock market updates here. For all other news related to business, politics, tech, sports and auto, visit Zeebiz.com.