Tata Sons, the investment holding arm of Tata Group companies, has received shareholder’s approval to raise 40,000 crores through various modes, including non-convertible debentures.
The Annual General Meeting (AGM) was virtually held on Tuesday when the company received approval. The acceptance comes at a time when Tata Group has quote some plans to enter the e-commerce business, which is presently dominated by Amazon, Walmart-backed Flipkart, and Ambani’s Reliance Retail. Tata Sons is also preparing to make a bid for the loss-making Air India.
The raise was approved, but the shareholders also nodded a yes to re-appoint directors like Saurabh Agrawal and Ralf Speth and Harish Manwani as independent directors.
Currently, Saurabh Agrawal, Ralf Speth, and Harish Manwani are the Chief Financial Officer at Tata Sons, Former CEO at group company Jaguar Land Rover and former global chief operating officer of Unilever, who is also a senior operating partner at private equity major Blackstone, respectively.
The meeting did not discuss giving a second term for Tata Sons chairman N Chandrasekaran, whose tenure ends in February 2022.
On the other hand, Bloomberg said that Tata Sons was taking a historic overhaul of its leadership structure into account. This, as per the report, may be done by creating a chief executive officer’s role to help improve corporate governance.
Tata Sons did not comment on the Bloomberg report, and a source said that it was unlikely that the company would appoint a CEO.