Kesoram Industries Ltd board approves resolution of debt, fund raising

The "Fund Raising Committee" and the Board of Directors of Kesoram Industries Ltd at their meetings held today, i.e. Monday, 30th November, 2020 have, approved issuance of Non-Convertible Debentures and/or Optionally Convertible Debentures aggregating upto Rs. 2200 Crores on a private placement basis. Further, as part of the Resolution Plan approved in principle pursuant to the RBI Circular of 7 June 2019 issued for providing the framework for resolution of stressed assets, conversion of the existing loan into Equity Shares upto Rs. 100 Crores, Zero Coupon Optionally Convertible Redeemable Preference Shares upto Rs. 500 Crores to the existing lenders and convening an Extra Ordinary General Meeting of Company for seeking approval of Shareholders for various matters were approved.

As part of compliance envisaged under the Resolution Plan, the forensic audit process has been undertaken. The Board of Directors have decided to enhance the limit of fund raising plan upto Rs. 3000 Crores by way of Equity and/or Debt Instruments including Non-Convertible Debentures/Optionally Convertible Debentures and/or Non Convertible Redeemable Preference Shares/Optionally Convertible Redeemable Preference Shares of the Company and/or any other convertible securities as may be deemed fit including by way of Rights Issue and/or Preferential Allotment and/or by a combination of any of the above, as may be permitted under applicable law, subject to such regulatory/ statutory approvals as may be required, including approval of the Shareholders of the Company. Further, pursuant to Regulation 30, we enclose herewith a copy of Press Release as approved by the Board.

The fund infusion by the Investors will aid the settlement with the existing lenders. This will improve the tight working capital position and create the environment for improving the business operations.

Shares of KESORAM INDUSTRIES LTD. was last trading in BSE at Rs.52.8 as compared to the previous close of Rs. 48.75. The total number of shares traded during the day was 272771 in over 2619 trades.

The stock hit an intraday high of Rs. 54.2 and intraday low of 50.1. The net turnover during the day was Rs. 14360533.

Source : Equity Bulls

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