Tata Comm incurs Rs 67 cr liability on organisational changes
Mumbai: Tata Communications Thursday said it has incurred a financial liability of about Rs 67 crore following certain organisational changes in the last quarter that included as many as 300 job cuts.
"The group undertook certain organisational changes to align it better to the group's current and prospective business requirements... Has incurred a one-time financial liability amounting to approximately Rs 670 million (USD 12.22 million) in respect to this exercise," Tata Communications said in a filing to the BSE.
The changes involved approximately 300 positions in the group across various functions and locations globally becoming redundant, the filing added.
According to the company, the information regarding organisational change and resultant financial liability have been disclosed in the preliminary offer document of its indirect subsidiary Tata Communications (Netherlands) BV for raising debt.
Tata Communications (Netherlands) BV is floating an issue of debt instruments in Singapore Dollar-denominated notes, which would be listed on the Singapore Stock Exchange.
The company did not disclose the amount to be raised through these notes, but according to merchant banking sources it is around SGD 500 million (about Rs 2,200 crore).
"A preliminary offering circular has been prepared and shall be made available to the prospective investors in relation to the contemplated issue of Notes," the filing said.