The Tata group is planning to give a boost to its online retail arm Tata Cliq by infusing Rs 3,500 crore. For this they have increased the authorised share capital of the company from Rs 1,500 crore to Rs 5,000 crore. In its latest regulatory filing to the Registrar of Companies, Tata UniStore, which owns Tata Cliq, said the board of directors has recommended increase in authorised share capital of the company through issue of equity shares, considering the funding requirements to enable it to run its business effectively.
The paid-up share capital of Tata UniStore is Rs 1,203.12 crore. The company has also increased its borrowing limit to Rs 490 crore. Analysts say, this indicates Tatas will be opening up their war chest in the future and intends to be in the ecommerce business for the long haul. Till now, Tata UniStore has raised only Rs 30 crore from its parent last April against Rs 311 crore in FY20, Rs 292 crore in FY19, and Rs 224 crore in FY18. As per the latest filings, the company’s revenue increased 144 per cent to Rs 266.03 crore in 2019-20 while its net loss surged by 9.7 per cent to Rs 270.64 crore. Yadav said Tata's bet is looking promising with the top line growing at a marginal increase in expenses.