Tata Tea sources said here today that the company will invest around 75 million sterling pounds for purchasing shares of the new subsidiary. Sources further said the company plans to raise $ 100 million through the issue of securities in order to finance the above projects.

A resolution enabling the management to go ahead with the decision would be placed in the forthcoming annual general meeting of the company, sources added.

It was, however, not yet decided whether these $ 100 million would be raised from the domestic market or through Global Depository Receipts or American Depository Receipts, sources said.

Tetley Ltd is a well-known UK-based international company having operations in Australia, Europe and Canada and the proposed acquisition is likely to consolidate Tata Tea's position as a leader in the global tea market.

About setting upof the new subsidiary, sources said depending on the final price at which the deal would be struck, the exact amount of investment in floating the company would be determined.

In order to facilitate the $ 100 million issue, the company is planning to increase its authorised capital from Rs 50 crore to Rs 75 crore by the creation of 2.50 crore equity shares of Rs 10 each ranking pari passue with the existing equity shares of the company in all respects, sources added.

Consequent amendment in Articles of Association would also be made, he said. Meanwhile, Tata Tea which reported a production of 60.7 million kgs last fiscal and achieved a growth of about 17 per cent in packet tea has decided that the vacancy on its board caused by retirement of Dadiseth be not filled for the time being.