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Aditya Birla Group’s unlisted mining arm, Essel Mining Industries Ltd (EMIL), has completed the first round of issuing non-convertible debentures (NCD) to refinance its existing high cost debt. Through private placement, earlier this month, 20 different funds of ICICI Prudential bought the NCDs to help Essel Mining raise ₹402.50 crore.
The company had last month got shareholder approval to issue NCDs to raise ₹2,000 crore. “To refinance the high-cost debt, capital expenditure, acquisitions and general corporate purpose, the company proposes to raise money by way of issuing unsecured redeemable non-convertible debentures in one or more tranches,” a copy of Essel Mining’s board resolutions says.
Apart from iron ore mines in Odisha, the company now has a wind power project in Maharashtra and a a solar power plant in Rajasthan.
EMIL also plans to put a greater emphasis on its coal MDO (Mining Development and Operations)-business vertical.
“Having successfully developed its coal MDO business, the company now intends to further growth this business vertical. It is exploring all opportunities in the coal sector both domestically and internationally,” the company had said in its latest annual report released last month.
The company had total borrowings (long-term + short-term) of ₹3,738 crore, as on March 31, 2014. For the fiscal 2013-14, the company had reported a 45-per cent drop in its net profit to ₹406.41 crore. During the fiscal the company’s total revenue dropped 23 per cent to ₹1,737.08 crore.
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