Kesoram Industries is looking to raise close to Rs 1,600 crore through the issuance of non-convertible debentures on a private placement basis. The company has also raised some optionally convertible debentures of around Rs 400-450 crore.

P Radhakrishnan, Whole-Time Director & CEO of the company said that the company was suffering from liquidity issues last year and Rs 460 crore fundraise will help in addressing that issue.

“Our cost of borrowing goes up. Right from last December-January, we were suffering for lack of liquidity in our business. So, it provides about Rs 250-300 crore of liquidity into the business which is very positive for the business,” he said in an interview to CNBC-TV18.

He also said that they will be repaying to the banks by way of cash and equity.

“We slipped in our repayment obligation to the bank somewhere in the month of January. Then we were in the process of reviving things as business required liquidity. Therefore the total loan is to the tune of about Rs 2,000 crore in our books. We are settling the banks in full i.e. 80% by way of cash and balance by way of equity and OCRPS instruments. This takes out the banks completely and then we bring close to Rs 2,060 crore – so effectively it will be Rs 1,878 crore, reducing the cost and front loading of interest,” he said.

Watch video for more.

(Edited by : Aditi Gautam)

First Published:Mar 17, 2021 1:45 PM IST