Tata group's e-commerce flagship Tata Digital will be increasing its authorised share capital from Rs 15,000 crore to Rs 20,000 crore as per a regulatory filing last week, paving the way for more capital investments by its parent company Tata Sons.
Tata Digital got board clearance in the last month for receiving an investment of Rs 3,462 crore over two instalments from Tata Sons. This move is expected to take the issued share capital of Tata Digital to Rs 15,934 crore, giving it headroom to get an additional equity investment of around Rs 4,000 crore.
The company is raising capital to repay debt and invest in other corporate branches apart from business activities and other general corporate requirements.
Tata Digital is a late entrant into the e-commerce segment, owning the newly launched 'super' app Tata Neu. In the past year, it acquired e-grocer BigBasket and e-pharmacy 1mg. It also holds the group's electronic retail chain and e-commerce site Croma.
This is the second time the Tatas will be increasing Tata Digital's authorised share capital this year. Earlier in March, the share capital was raised to Rs 15,000 crore from Rs 11,000 crore.
Tata Sons invested Rs 11,872 crore in Tata Digital in the financial year 2021-22. As of last month, Tata Digital's issued and paid equity share capital was Rs 12,472 crore.
Tata group had invested conservatively in e-commerce until 2020-21. According to company registrar filings, Tata Digital raised Rs 400 crore in 2020-21 and Rs 100 crore in 2019-20.Disclosure: Moneycontrol could not independently verify this report.