Shares of Mukand Ltd went up 5 per cent on Monday after the company informed the stock exchanges that it has executed a term loan agreement with a bank for availing of a promoter-backed unsecured term loan at a competitive rate of interest on Saturday. This should result in significant savings in interest cost, it said.
Th stock rose Rs 2.10, or 4.98%, to Rs 44.45 on the NSE today.
The company informed that the tenure of the loan is two years and disbursement is subject to fulfillment of certain conditions. The loan amount would be utilised for refinancing the company's existing high cost borrowings, Mukand said in a notice to the stock exchanges.
Initially, the loan amount will be for Rs 650 crore and the company will take an additional loan of Rs 350 crore, subject to shareholder approval for enhancing its borrowing powers.