Rs , sq ft

Removed from Shortlist

My Shortlist ()
Keep track of your shortlisted properties here. Shortlist a property to get started.

GMR enterprises under huge debt

No Comments Sub Category:Realty News Posted On: Sep 22, 2014

The current debt position is around Rs 37000 crore and post rights issue which is expected to happen sometime in November, I think this should fall down by around Rs 1300 crore again further. Apart from the actual aggregate amount, what is the miracle that is going to happen actually, if you look at our balance sheet as on March 31, our debt to equity was 1:3.7?

Post QIP it fell down to 1: 3.3 and now of course subject to Sebi approval and the successful completion, this will fall down to as low as 2.70. So in a span of less than six months or even eight months, the debt to equity will be falling down from 1:3.7 to 1:2.70; so that will be the real benefit that this both rights and QIP are going to cost to the company.

Number two, out of the QIP proceeds we had already reduced our corporate debt by about Rs 300 crore and now we are using other Rs 1250 towards reducing the debt. This will bring down the corporate debt in a span of six months by as much as around Rs 1500 crore, that will save the company as much about Rs 200 crore per annum.

Source: Mint

Leave a Reply



CommonFloor Property Search Mobile App now available on Android, iOS and Windows!