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Kesoram Industries Ltd has informed that Brickwork Ratings has assigned A+ rating for its Rs 2,200 crore long-term loan with Axis Bank.
Diversified Kesoram Industries Ltd, after a major restructuring of business, has reduced a substantial amount of short-term debts and business verticals in the last couple of fiscals. The exercise saw Kesoram shed one of the two tyre units and non-operative chemicals as well as spun pipe businesses. It also sold off some financial investments.
According to Tridib Kumar Das, Whole-time director & CFO of the BK Birla group company, the proceeds from sale of assets had been utilised to pay off short-term debt and for working capital borrowings.
The company could garner Rs 2,195 crore by selling off Laskar tyre unit in Uttarakhand to JK Tyre and Rs 830 crore from the sale of investments as well as assets of Hindustan Heavy Chemicals and spun pipe unit.
In 2015-16, the company had a short-term borrowing of Rs 3,444 crore, which now stands reduced to just Rs 19 crore.
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