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The BK Birla Group company Kesoram Industries plans to raise close to ₹100 crore through preferential allotment of shares and warrants to a trading company associated with the promoter group - Usinara Trading and Services Private Ltd. The company’s board has approved allotment of up to 31.74 lakh equity shares at ₹105 a share aggregating to ₹33.33 crore on a preferential basis through private placement subject to requisite statutory and regulatory approval, the company said in a notification to stock exchanges. The board has further approved issue and allotment of 63.49 lakh convertible warrants at ₹105 a warrant aggregating to up to ₹67 crore. The company had earlier said that it was hopeful of completing its ₹200 crore rights issue by November post which it would look at bringing down the cost of debt by replacing some high cost bonds with lower coupons. Our Bureau
To pare debts
The company has been striving to reduce high cost debt through a combination of equity and replacing existing debt with lower coupon. As a step towards that plan, the company’s board had recently approved raising of funds up to ₹600 crore, by way of issuance of securities through one or more modes including by way of a private placement, follow-on public offering, qualified institutions placement or a combination thereof, subject to shareholders' approval or through a rights issue.
The company’s net debt currently stands at around ₹1,890 crore, down from ₹2,000 crore in October 2020.
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