The shareholders will vote on the proposal on September 14 at the company’s annual general meeting which will be held online due to the Covid-19 pandemic.
The enabling resolution will help the company tap the market as and when required for its growth plans. It plans to invest in acquiring Air India in the coming months which is being sold by the Indian government as part of its disinvestment plan. The company will also use the funds to invest in its financial services, real estate and infrastructure businesses.
Tata Group is all set to launch its Superapp which will bring all goods and services of the group under one umbrella and is making huge investments in acquiring new brands and digital retail companies.
Recently, the group announced plans to enter the semiconductor business amid a global shortage of chips used in high-end cars and power stations.
Tata Sons is using the debt route as it has the highest credit rating and the top institutional investors, including Life Insurance Corporation, invest heavily in these instruments for safe returns. “We regard the credit quality of Tata Sons to be strongly investment grade,” a recent S&P statement said.
The shareholders will also vote on the re-appointment of Saurabh Agrawal, and Ralf Speth as directors and Harish Manwani as an independent director. Manwani received a second term of three years beginning May this year. The notice is silent on the re-election of N Chandrasekaran as a director whose term comes to an end early next year.
Tata Sons did not comment on Chandra’s re-appointment.
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