Of the total debt of Rs 1,117 crore, a sum of Rs 545.85 crore is being converted into Optionally Convertible Debentures (OCDs) with a tenure of 10 years carrying a coupon at the rate of 0.01 per cent with a yield to maturity (YTM) of 8.15 per cent.
However, in the first five years, only the coupon will be paid and the payment of the effective YTM for the said first five years will commence from the sixth to 10th year.
"The repayment of such OCDs shall be in 20 quarterly installments, starting from quarter ending December 2022 and ending on the quarter ending September 2027," the company said in a statement.
It said that the Reserve Bank of India (RBI) mandated overseeing committee had approved S4A scheme earlier and the 11-member consortium of banks, inclusive of State Bank of India, Punjab National Bank, Bank of Baroda, and ICICI Bank among others, and foreign institutional investors, led by Canara Bank, have signed the agreement.
"It is going to help the company to recast its debt and improve cash flow. This scheme will support our business expansion plan and faster project execution with increased working capital fund base resulting in profitable revenue growth to benefit all the stakeholders of the company", Subhash Sethi, the company's chairman said.