Saturday, 31 March 2018

Birlas convert Rs 2,800 crore AB Group retail bonds into equity

http://www.adityabirla.com/home
Aditya Birla Group chairman Kumar Mangalam Birla and his family have converted bonds worth more than Rs 2,800 crore into equity for the group’s food and grocery business, reducing debt that has consistently weighed down profitability. 

"Aditya Birla Retail (ABRL) passed a board resolution to issue equity shares worth Rs 2,837 crore to group firms Kanishtha Finance & Investment and RKN Retail, promoted by Birla, his family and some closely held companies of the family," ABRL said in a filing with the Registrar of Companies. The board of the retailing business had met on March 23 to give its approval. The fund infusion will involve allotment of 907 million fully paid up equity shares of Rs 10 each to Kanishtha Finance  .. 


ABRL, the operator of More supermarkets, reported a 20% increase in FY17 sales to Rs 4,194 crore, with net loss narrowing to Rs 644 crore. However, the company had debt of about Rs 6,573 crore on its books and financing costs amounted to Rs 471 crore for the year. Accumulated debt was mainly due to the acquisition of Trinethra and Fabmall a decade ago, and Jubilant’s Total Super Store two years ago. 

Read more details : http://tradenivesh.com/ 

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