BoB to convert Andrew Yule debt to equity

The Cabinet on Wednesday cleared conversion of Bank of Baroda's Rs 29.91 crore loan to Andrew Yule & Co. Ltd (AYCL), which is engaged in production of bulk tea, into equity shares, paving the way for disinvestment of the Kolkata-based PSU. The conversion of loan to equity would help bring down the cost of servicing of debt, resulting in improved profitability and liquidity of AYCL in coming years. Shares of AYCL closed at Rs 24.50, up 12.90 per cent over previous close on the BSE.