 "Matix Fertilisers plans to raise fresh funds through debt and equity")
Matix Fertilisers and Chemicals, whose parent Firstland Holdings was a major investor in Deepak Kochhar’s controversial NuPower Renewables between 2010 and 2014, has filed documents with the Registrar of Companies, indicating plans to raise funds through debt and equity. The filings show plans for a fresh equity infusion of up to Rs1 billion and an agreement for an additional public sector bank loan of Rs230 million.
The move comes even as Matix has struggled with repayment issues. In an April 5 note on its website, rating agency CARE Ratings said there had been delays by Matix in repaying borrowers. It has rated the company’s debt ‘Care D’, which indicates that instruments are in default or expected to default soon. It cited non-cooperation from the borrower, and also said the company had not paid the agreed fees for carrying out the rating.
Company records show Firstland Holdings as the ultimate holding company for Matix. Firstland also invested in NuPower Renewables, which has faced allegations of impropriety in receiving capital from entities that got loans from ICICI Bank, headed by Deepak Kochhar’s wife Chanda Kochhar.
Firstland invested in convertible instruments which gave it a stake in NuPower. It had Rs3 billion in investments which it later exited in favour of DH Renewables Holding. Firstland also invested in Matix which started operations in October 2017. A December 2016 valuation report by chartered accountancy firm Nisar & Kumar, valued the company at Rs20.9 billion.
Nishant Kanodia, chairman of Matix group, is the son-in-law of Essar group Chairman Ravi Ruia.
“(Following) the acceptance of invitation for equity investment in the company by Matix Fertilisers Holdings, Mauritius (‘MHFL’)… the company (shall)…offer, issue and allot equity shares… for cash… provided that the aggregate value… shall not exceed an amount of Rs 1 billion,” show company documents dated November 17, 2017 but filed on July 5, 2018.
The filing on additional borrowings was made a few days earlier.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%