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Banks baulk at Rs 4,000-cr loan to Patanjali for Ruchi Soya acquisition

Say there's no corporate guarantee offered by parent firm for the loan

Patanjali
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According to Patanjali’s plan, the banks would take a 65 per cent haircut on Ruchi Soya’s Rs 12,100-crore dues

Raghu MohanDev Chatterjee Mumbai
Bankers are jittery over Patanjali Ayurved’s repayment, funding capacity of a fresh Rs 4,000-crore loan sought for Ruchi Soya acquisition after a rating firm downgraded Patanjali’s debt saying there is no corporate guarantee offered by the parent firm for the loan. 

Within days of the downgrade on October 17, Care, the rating firm, withdrew the ratings after a request by the company and a no-objection certificate was issued by the banks.

According to a banking source, the downgrade has raised questions about the viability of repayment of the loan. “The existing bankers to Ruchi are again giving a loan for the acquisition

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First Published: Oct 29 2019 | 9:53 PM IST

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