According to reports, the Tata Group has secured funding for Tata Electronics' greenfield electronic component and contract manufacturing operations. According to a media report, it has acquired around Rs 7,600 crore in funding through a combination of capital infusion by the parent and secured loans.
According to documents submitted to the Registrar of Companies (RoC), Tata Electronics got a capital infusion from its parent company Tata Sons of more than Rs 608 crore in 2022–2023, according to The Economic Times.
The cumulative capital infusion over the last three years is currently Rs 1,820, making this the greatest capital infusion in a single fiscal year.
According to the newspaper, the company has a Rs 2,000 crore approved capital and has so far raised Rs 5,799 crore in secured loans, according to documents.
"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.
The greenfield business, Tata Electronics Pvt Ltd (TEPL), was established in 2020 and has experience producing precise electronic components. The Krishnagiri district of Tamil Nadu is home to TEPL's production site, where it strives to leave a responsible socioeconomic mark.
By providing the required intervention and help in the areas of health, cleanliness, and education, the charity also hopes to change the social and cultural landscape in the neighbourhood.