Home appliances major Voltas announced on Wednesday that it will take up to ₹500 crore in term loans to finance the manufacturing of new plants in Chennai and Waghodia (Gujarat). The leading AC manufacturer from the Tata Group stated in a filing that its board, in a meeting on Wednesday, November 8, approved the proposal to take an unsecured rupee term loan of up to ₹500 crore from a bank.
The loan will be used for the company’s capital expenditure for its new manufacturing plants in Chennai and Waghodia, Gujarat.
The board also approved dropping the proposed non-convertible debentures issue through private placement for raising to ₹500 crore.
The board of directors, in its meeting on October 19, approved raising up to ₹500 crore through non-convertible debentures on a private placement basis, the company informed the bourses.
“The proposal for the issue of NCDs is withdrawn for the time being,” Voltas said in the filing on Wednesday.
The development came a day after Voltas rejected a news report that claimed that Tata was considering the sale of Voltas Home Appliance Business.
In a filing to the stock exchanges on Tuesday, the company clarified that the aforesaid news was totally incorrect and blatantly false, with no factual basis whatsoever.
“The management therefore denies any such development,” said Voltas.
The company said that it is a market leader in room air conditioners and its joint venture with Arcelik for Voltas. Beko Products is one of the fastest-growing brands in the Appliances business. The organisation continues to outperform the market and exceed revenue targets in all its product categories.
Voltas re-affirms its commitment to the home appliance business, and the company will further strengthen its market-leading position in the categories that it represents, the filing added.
Voltas shares were trading 0.85% higher at ₹820.70 apiece on BSE at 11.38 AM.
(Edited by : Ajay Vaishnav)
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