Tata Group lines up over Rs 7,600 crore to fund its electronics business: Report

The Tata Group has reportedly lined up funds for its greenfield electronic component and contract manufacturing business through Tata Electronics. It has lined up funds of over Rs 7,600 crore through a mix of capital infusion by the parent and secured loans, as per a media report.

The filings made to the Registrar of Companies (RoC) suggest that Tata Electronics received over Rs 608 crore capital infusion in 2022-23 from its holding company Tata Sons, The Economic Times reported.

This was the highest capital infusion in a single financial year and with this, the total capital infustion till now stands at Rs 1,820 in last three years.

The authorised capital of the company is reportedly at Rs 2,000 crore and the filings also show that the company has raised secured loans of Rs 5,799 crore as of date, the report added.

"The company has almost exhausted its funding limit from the parent since the authorised share capital is Rs 2,000 crore and paid-up capital is Rs 1,820, leaving a balance funding capacity of Rs 180 crore to be utilised. It will have to expand its authorised share capital limit to further expand funding. Also, a portion of the secured loans of Rs 5,799 crore might have already been paid off," the ET report quoted Mohit Yadav, founder, AltInfo, as saying.

Tata Electronics Pvt Ltd (TEPL), the greenfield venture which was incorporated in 2020, has expertise in manufacturing precision electronic components. TEPL's manufacturing facility is located in the Krishnagiri district of Tamil Nadu where it works towards creating a conscientious socio-economic footprint.

The organisation also aims to make a difference in the social and cultural landscape in the surrounding areas by necessary intervention and assistance in health, hygiene, and education.

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