The BK Birla Group company, Kesoram Industries Ltd, is looking to raise close to ₹ 1,604 crore through the issuance of non-convertible debentures (NCD) on a private placement basis.
The NCD, which matures in February 2026, will give a yield of around 20.75 per cent.
“The Fund Raising Committee, as authorised by the Board, at its meeting held on March 16, 2021, has approved the allotment of 16,035 senior, secured, listed, rated and redeemable non-convertible debentures of a face value of ₹10,00,000 each aggregating to ₹1,603.50 crore on private placement basis, on the terms and conditions as mentioned in the information memorandum,” the company said in a notification to stock exchanges on Tuesday.
The proposed securities carry a coupon that increases in stages the longer they are outstanding. As per the information available on stock exchanges, the coupon rate will be 9.10 per cent per annum payable monthly for a period ranging from one-to-18 months; 11.30 per cent for 19-to-36 months and from the 37th month onwards it would be 13.10 per cent.
The company had earlier defaulted on debt last year and its finances have also been stressed amidst stiff competition in the cement business. Kesoram had earlier allotted equity shares and preference securities to ten creditors as part of its plan to restructure the debt.
In its financial statement for the quarter ended December 31, 2020, Kesoram said, it had not complied with certain financial debt covenants and defaulted in repayment of letters of credit, working capital facilities and interest payable to lenders aggregating to around ₹ 432 crore at standalone level and ₹ 457 crore at consolidated level in respect of its term loans and working capital facilities as on December 2020.