Asian Granito India is planning a major debt reduction and focusing on asset light and capital light business model.
The Company is reducing debt by around Rs. 40-45 in the near future and further reduction of Rs. 50-60 crore in next 1-2 years, thereby eyeing a total debt reduction of around Rs. 100 crore.
Proceeds from warrants and internal accruals will be utilised to reduce the debt. Post conversion of the warrants, promoter group holding is expected to increase to around 37.5% from 34.02% as of December 2020.
Company is expecting to receive Rs. 41.85 crore from warrants issued to promoter and non promoter groups.
Warrants are maturing on 07 April 2021, whereas the company expects to receive the same in the next few days. Entire proceeds of warrants will be used to repay debt.
The Company had issued 47 lakh warrants on preferential basis to promoter and non-promoter group in September 2019 at Rs. 180 per warrant to meet future expansion plans, debt reduction, meet working capital requirement and improve capital structure.
Consolidated Debt of Asian Granito India as on 31 March 2020 was Rs. 308.9 crore.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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