Moneycontrol Bureau
Tata Chemicals has entered into a private placement with potash miner EPM Mining which will see Tata expand its stake in the company.
EPM will issue one unit, representing eight million voting shares and eight million purchase warrants, to Tata at a price of $16 million.
Upon closing, Tata Chemicals will boost its ownership of EPM Mining to 30.6% It currently also owns shares through a separate subsidiary.
Meanwhile, Tata Chemicals touched an intraday high of Rs 356.10 and an intraday low of Rs 349. At 09:46 hrs its share was quoting at Rs 354.10, up Rs 5.20, or 1.49%.
EPM says it plans to use the proceeds to evaluate properties and for general working capital.
Meanwhile, Tata Chemicals has drawn up a capital expenditure plan of Rs 800 crore over the next three years. Speaking at the 72nd annual general meeting of the company, Ratan Tata, Chairman, Tata Chemicals, said going forward the company has to take on key challenges, such as the upward spiral in commodity prices and delay in allocation of gas for expansion in fertiliser capacity. Besides, he said, the company has to adapt to frequent monetary policy changes being made by the central bank.
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