Tata Chemicals gets $100 mn from private placement in August

Tata Chemicals gets $100 mn from private placement in August

New Delhi: Tata Chemicals Ltd received $100 million (Rs406 crore) through a private placement in the US in August, a few days before India tightened rules on foreign borrowings, senior officials said on Tuesday.

“We just finished our programme of funding," R. Mukundan, executive vice-president (chemicals), told reporters.

“We actually raised it just before the caps were put in place, so for us it has not been an impact at all," Mukundan said, referring to the impact of the tightening.

The total placement was of $125 million, of which $100 million has been received, but not yet brought into India, chief financial officer P.K. Ghose told Reuters over the telephone. The remaining $25 million will be received in November, Ghose said.

The government had tightened rules on foreign borrowings by local firms on 7 August, a move analysts had said would raise borrowing costs for the companies by 1-2 percentage points.

The private placement was led by Bank of America, and the proceeds would be used for purposes, including acquisitions, Mukundan said. He, however, did not rule out the possibility of the company requiring further funding.