Birlas infuse Rs 1,100 cr in Essel Mining to pare debt of group firm IGH

The proceeds were used to on-lend to IGH and prune its borrowings by 40% by March 2020

In a bid to reduce debt, Essel Mining, the unlisted promoter entity of Aditya Birla Group (ABG) has raised Rs 1,100 crore to on-lend to IGH Holdings Private Limited (IGH). The additional fund infusion reduced IGH Holdings debt to Rs 1,800 crore by March 2020 from Rs 3,000 crore. Its lenders are expecting to continue the debt reduction plan in the current fiscal also.

IGH Holdings is among the main vehicles of the Birla family promoter entities, which holds stake in various listed companies. IGH holds stake worth Rs 14,000 crore in Hindalco Industries Ltd, Grasim Industries Ltd, Aditya Birla Fashion