Engineering and geospatial services company Rolta is planning to raise $200 million through issuance of overseas bonds in order to rejig its debt portfolio. The company seeks to ‘dollarise’ its balance sheet on the liabilities side, by converting the rupee debt on its books to dollar-denominated debt, sources close to the development said. Moreover, Rolta’s international business has been growing at a faster clip than its domestic unit.
On being approached, Rolta Chief Financial Officer Hiranya Asher, said: “We are discussing the matter…we are going on a road show soon to meet some of the investors. Depending on the response we get, we will take a call on how to go about it.”
The move will also help reduce the interest burden on the company. Rolta has debt of around Rs 2,800 crore on its books. In general, rupee loans attract interest rates in the range of 11-12 per cent, whereas Indian corporates have recently raised debt at under six per cent interest rate.
Recently, Rolta reported a nine per cent increase in consolidated net profit at Rs 73.14 crore for the fourth quarter ended March 31, 2013 from Rs 67.28 crore in the year-ago period.