DCW spurts on refinancing debt

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DCW jumped 8.16% to Rs 30.5 after the specialty chemical maker announced that it has completed refinancing its debt with the issuance of non-convertible debentures and optionally convertible debentures.

In an exchange filing during market hours today, DCW said that it has completed the refinancing of its debt with the issuance of NCDs (non-convertible debentures) amounting Rs 350 crore and OCDs (optionally convertible debentures) to be converted into equity within 18 months, amounting to Rs 60 crore.

DCW said it will utilise the funds in refinancing the existing term loans and augment working capital. The company expects this fundraise to enhance capacity utilization, and meet increasing product demand. These NCD's carry a moratorium of 18 months and a tenure of six years.

Commenting on the transaction Vimal Jain, CFO of DCW said, "DCW saw strong investor interest for NCD and OCD and could manage this fundraise at favourable terms. Through these transactions, the company extended its debt stack maturities and added additional liquidity to the balance sheet. DCW's credit profile remains stable with positive bias. With the completion of this refinancing, the company has managed to enhance financial flexibility and is on a firmer footing to achieve long-term growth."

DCW is a specialty chemical company, manufacturing PVC, C-PVC (chlorinated polyvinyl chloride), Caustic Soda, Soda Ash and Synthetic Iron Oxide Pigment (SIOP). The company posted a net profit of Rs 6.2 crore in Q3 FY21 as against a net loss of Rs 4.03 crore in Q3 FY20. Net sales grew by 23% year on year to Rs 386 crore in Q3 FY21.

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