Shares of Birla Tyres held by Manav Investment & Trading Company were pledged with IndusInd Bank for securing the outstanding dues under Emergency Credit Line Guarantee Scheme (ECLGS) facility from the bank to the borrower company -- Cygnet Industries Limited (CIL).
Goldman along with an Edelweiss fund have agreed to infuse Rs 1,600 crore in the form of 5 year debentures. Another Rs 200 crore will be used for working capital requirements and other general corporate purposes as part of RBI's resolution plan for stressed assets. There is a possibility of a third investor but that is not yet finalised.
"We are planning to invest Rs 600 crore in 2016-17. The investment will be towards cement and tyre business," Kesoram director and CFO Tridib Kr Das said.
As far as tyre is concerned, we are in that restructuring mode, we have done all the necessary restructuring in it and we are consolidating our position by putting resources at our Balasore factory.
The company reported a net profit of Rs 339.67 crore during the same quarter of 2014-15.
However, the consolidated net sales for the company fell by 3.6 percent to Rs 1790 crores as compared to Rs 1858.6 crore in the same quarter last year.
The acquisition will provide JK Tyre with further impetus towards ready expansion in the Truck & Bus Radials segment where it is a market leader as well as entry into the fast growing 2 / 3 Wheeler tyre market
JK Tyre will borrow Rs 1,500 crore from public and private sector banks with the rest coming from internal accruals.
While MRF was the front-runner for the asset Apollo has recently entered the fray said multiple sources aware of the ongoing negotiations.
Restructuring of Kesoram Industries is a step towards the eventual takeover of the company by Kumar Mangalam Birla as stated in BK Birla’s will.
In a recent communication to the stock exchanges, the company said that it is exploring options for reorganising and realigning its existing business.
| Name | DIN | Designation | Date of joining | |
|---|---|---|---|---|
| Basant Kumar Birla | 00055856 | Director | 23 Aug,1940 | |
| Manjushree Khaitan | 00055898 | mk@kesoram.net | Whole-time director | 30 Oct,1998 |
| Amitabha Jugalkishore Ghosh | 00055962 | statutory07@rediffmail.com | Director | 29 Jun,2006 |
| Kashi Prasad Khandelwal | 00748523 | ca.kpkhandelwal@gmail.com | Director | 10 Apr,2012 |
| Tridib Kumar Das | 01063824 | tridibk.das@kesoram.net | Director | 01 Apr,2016 |
| Vinay Sah | 02425847 | vinaysah@hotmail.com | Nominee director | 03 Nov,2011 |
| Lee Seow Chuan | 02696217 | 1scjeff@gmail.com | Director | 08 Aug,2014 |
| Sudip Banerjee | 05245757 | sudip.bnrj@gmail.com | Director | 29 Apr,2014 |
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