Sanghi Inds set to buy out Rs 500 cr of Kotak bonds early
Sanghi Industries, the company acquired by Adani-owned Ambuja Cements, is set to buy out ₹500 crore bonds from Kotak Special Situations Fund a year ahead of maturity. Last November, the listed cement maker had raised the sum through non-convertible debentures at 16-17% interest rate from Kotak Special Situation Fund for an 18-month period, and financing was secured against the company's assets and shares. The fund was utilised to reduce the company's debt, including prepayment of term debt amounting to ₹210 crore and reduction of working capital debt of ₹100 crore.
«Kotak Special Situations Fund will be paid ahead of the maturity as this was a kind of bridge finance for the promoter,» said a source. A Kotak spokesperson declined to comment. On August 3, Ambuja Cement entered an agreement to acquire up to 56.74% of the equity share capital of Ravi Sanghi-led Sanghi Industries, based in Gujarat, and certain members of the promoter group with an enterprise value of ₹5,000 crore, including debt of the company.
The company's shares are trading at ₹111 on the Bombay Stock Exchange. The deal is expected to close in 3-4 months, subject to approvals, including approvals from the Competition Commission of India. Following the acquisition of 56.74%, Ambuja Cements has made an open offer of ₹767 crore to buy out an additional 26% stake.
As of March 31, 2023, the total financial indebtedness of Sanghi Industries, including short and long-term debt, stood at ₹1,530 crore. The company had previously requested NCD holders for a deferment of interest payment. The company has presence in Gujarat, Rajasthan, Maharashtra, Madhya Pradesh and Kerala in the domestic market.
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