BK Birla Group’s Kesoram Industries is looking at reducing the debt to around Rs 1,800-Rs 1,900 crores after restructuring. Lenders to Kesoram include State Bank of India, Axis Bank, HDFC Bank, ICICI Bank, IndusInd Bank, and Punjab National Bank.
Goldman Sachs is offering Rs 1,800 crore to BK Birla Group’s Kesoram Industries Limited (KIL) to refinance its current financial institution debt and supply new capital to increase its cement enterprise, stated several individual conscious.
Kesoram Industries is aiming to conclude the restructuring process for improving its business operation by December, with predominantly US-based investors subscribing to its non-convertible debentures and optionally convertible debentures aggregating up to Rs 2,200 crore on a private placement basis.
After the proposed restructuring, the existing lenders are likely to have a stake of around 9%.
On October 31, the full gross excellent thought-about for the debt decision train stood at Rs 2,182 crore. The present financial institution lenders embody Axis and ICICI Financial institution, HDFC Ltd, IndusInd, Yes Bank amongst others.
The debentures will appeal to a 10% each year working coupon for the primary 2 years adopted by a 15% price for the residual three and shall be secured in opposition to “fastened property” specifically its cement models; “freehold and leasehold actual properties, present and nonpresent property.”
The present lenders are additionally changing a part of the debt into 10% of the fairness of Kesoram Industries at Rs 40 a share. As soon as accomplished, the present lenders will get well 81% of their publicity.