Titan Company to raise Rs 2,500 crore via unsecured NCDs on private placement basis

Titan anticipates a 20 percent annual growth in revenue for the quarter ending September.

Titan Company approved a proposal to raise up to Rs 2,500 crore through the issuance of rated, listed, redeemable, unsecured Non-Convertible Debentures (NCDs) on a private placement basis.

A board committee has also been empowered to finalise the issuance terms and allotment of the NCDs, the company said in a regulatory filing on October 17.

Unsecured Non-Convertible Debentures (NCDs) are debt instruments issued by companies without collateral backing. Being "non-convertible," they cannot be transformed into equity shares of the issuing company. Instead, investors receive a fixed interest over a specified period. Due to their unsecured nature, they typically carry higher interest rates to compensate for the increased risk.

The board of directors, at the said meeting, had 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 or financial institutions.

Titan anticipates a 20 percent annual growth in revenue for the quarter ending September, fuelled by its watches and wearables segment. As e-retailers prepare for a strong festive season, the watches and wearables division saw a 32 percent growth compared to last year.

Specifically, analog watches grew by 22 percent , while wearables surged by 131 percent, as reported by the Tata Group enterprise in their quarterly update on October 6.

In the July–September period, the company added 20 watch stores. Of that, 10 were Titan World stores, five were Helios, and five were Fastrack.

Titan shares were trading at Rs 3305.7, up 0.13 percent at 3:07 pm on NSE.