On May 12, the board of Andrew Yule & Company will formally decide on the proposed conversion of ₹29.91 crore working capital borrowings from Bank of Baroda (BoB) into equity. In a filing to the stock exchanges, the State-owned company also said that fresh equity investment by the government would also be decided at the meeting.
The preferential issue price to BoB as a qualified institutional buyer price will be market-determined. This conversion would bring down the company’s cost of debt servicing to ₹2.86 crore a year.