The board of Titan has given its go ahead to raise up to Rs 2,500 crore through non-convertible debentures (NCDs) on a private placement basis, the company announced in a filing.
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"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 given the power to oversee all actions related to the finalization of terms for issuing and allocating NCDs (Non-Convertible Debentures). Additionally, the Board has discussed a plan to secure long-term borrowings in the form of unsecured loans, with a cap of Rs 1,000 crore, from banking institutions.
Titan shares have shown a strong performance this year, registering a gain of approximately 29%. The gems and jewelry stock reached an all-time high of Rs 3351 in mid-September; however, it subsequently retraced some of its gains, undergoing a price correction.
“The stop loss can be kept at Rs 3,120 on a closing basis,” said Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher.
Titan Co reported a robust 20% year-on-year revenue growth for the second quarter ending in September. During this period, they expanded their retail presence by adding 81 stores, bringing their total store count to 2,859.
Within the jewelry segment, the 19% revenue growth was primarily fueled by a 20% surge in the domestic business, along with reduced primary outflow from India to international entities, driven by periodic inventory realignment.
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The Watches and Wearables (W&W) division exhibited remarkable domestic business growth of 32% YoY, with a 22% increase in analog watch sales and an impressive 131% growth in Wearables. Notably, on Monday, the company's shares closed 0.32% higher at Rs 3,312 on the NSE.