Kesoram Industries board gives nod to raise up to Rs 2,500cr

Kolkata: B K Birla Group flagship Kesoram Industries board on Saturday approved to raise fund up to Rs. 2,500 crore to lower the cost of borrowing to replace high-cost NCDs and OCDs. The company had raised about Rs 1,900 crore Non-Convertible Debentures (NCDs) and Optionally Convertible Debentures (OCDs) in the past for bank debt restructuring at nearly 20 per cent interest rate through a private placement.

The company informed that it can raise the fresh funds by way of equity, bond, foreign currency floats, or other instruments.

The company recently had a rights issue of Rs 400 crore.

With Rs 200 crore raised as part payment from the rights offer, the working capital issue has been largely resolved, officials said.

The remaining Rs 200 crore will be collected later, they said.

"The company is expected to be Rs 550-600 crore EBITA (Earnings Before Interest Taxes and Amortisation) company in FY'22. And this will rerate the company in terms of borrowing capabilities," the officials said.