Konark Synthetic Ltd to sell property for debt repayment

Konark Synthetic Ltd owns land and building (property) situated at Plot No. 25, Silvassa Industrial Co-op. Soc., 66 KVA Sub Station Road, Village Amli, Dist.: Silvassa - 396230, which is currently underutilized. The sale of the said property is being undertaken with a view to monetize the same for strengthening the Company's financial position by reducing its outstanding debt obligations thus reducing its overall finance cost.

In line with the Company's strategic focus on operational efficiency and financial prudence, the Board, based on the recommendation of the Audit Committee, has decided to monetize said assets. The prevailing market conditions provide an opportunity to realize a decent value for the said property. Additionally, the Company may explore the option of leasing back the same property post-sale or lease another property, to ensure continuity of business activities without long-term capital tie-up.

The proceeds arising from the sale of the said property shall be primarily utilised towards repayment of existing borrowings and interest obligations. This would result in an improvement in the Company's debt-to-equity ratio, reduce finance costs, and enhance liquidity for the company. The balance, if any, may be utilised towards working capital requirements or general corporate purposes, as may be decided by the Board from time to time.

Source : Equity Bulls

Keywords

KonarkSynthetic PropertySale FinancialPosition DebtRepayment