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Titan Company share price rises over 3% amid plan to raise Rs 900 crore through commercial paper

Titan Company share price rose up to 3.08% to Rs 1,119.91 compared to the previous close of Rs 1,085.65 on BSE.

twitter-logo BusinessToday.In        Last Updated: September 13, 2019  | 11:56 IST
Titan Company stock rises over 2% amid plan to raise Rs 900 crore through commercial paper

Titan Company share price rose in early trade today amid report that the firm plans to Rs 900 crore through commercial paper. Titan Company share price rose up to 3.08% to Rs 1,119.91 compared to the previous close of Rs 1,085.65 on BSE.The stock of Titan watches and Tanishq jewellery maker opened 0.92% lower at Rs 1,075 today. The large cap stock has risen 19.89% since the beginning of this year and gained 34.775 during last one year.

The Tata Group firm plans to raise about Rs 900 crore through commercial paper, reported Business Standard. The report cited credit ratings agency ICRA assigning positive ratings to commercial paper of Titan.

Also read: Rakesh Jhunjhunwala, wife Rekha earned Rs 483.75 crore with this stock in just four trading sessions

On September 5, ICRA assigned positive ratings to Titan's commercial paper (CP ) programme. ICRA gave A1+ ratings to the company's Rs 900-crore commercial paper. Fund-based and non-fund based limits of Rs 1,700 crore under the CP programme were assigned AA + (positive) and A1 + (outstanding ) ratings by the credit ratings agency. The firm's fixed deposit programme worth Rs 1,500 crore also received outstanding ratings from ICRA. ICRA cited strong liquidity position and cash flows of the firm behind the positive ratings.

"Titan has a strong liquidity profile with healthy cash accruals of over Rs 1,000 crore, expected annual capex outlay of around Rs 300 crore and negligible long-term debt repayment obligations. In addition, Titan had healthy cash and liquid investment reserves of over Rs 900 crore as on March 31, 2019 (excluding restricted cash and inter-corporate deposit investments), " ICRA said.

The ratings agency also mentioned the firm's jewellery business, which has been gaining market share consistently.

"Titan's jewellery business has been consistently gaining market share on the back of its strategies of increasing its revenue share from wedding and high-value studded segments. Moreover, its expanding presence in geographies with low market share and enhancing customer value proposition through Golden Harvest scheme and gold exchange programme has increased its revenue base."

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