Tata Metaliks on Thursday announced an expansion plan of Rs 555 crore. The board also reviewed the financial strategy of the company and approved the issuance of equity shares and convertible warrants to the promoter. Sandeep Kumar, MD of Tata Metaliks, spoke to CNBC-TV18 about the development.

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“The plan for expansion involves basically funding through equity by the promoter as well as internal generation, which is currently quite healthy. Between the two, we should be able to manage the entire funding for the expansion. At the moment, it doesn’t look like we need any debt, in fact, we will be a virtually a debt-free company after the infusion. This strengthens the balance sheet significantly for us to be fitter for future,” Kumar said on Friday.

Talking about the company's debt level, Kumar said, “The current debt as on December 2018 was around Rs 425 crore and this debt is steadily coming down for quarter-on-quarter (QoQ) over the last two years. So at the end of March, it would have come down further which we will be able to report to you in April. However, with the infusion of equity and the cash generation with an EBITDA level of more than Rs 250-300 crore, which we have seen over the last year or so, we virtually will be debt free by next year".