Ifc Picks 14.5% In Usha Beltron For Rs 18 Crore

Multilateral funding agency IFC Washington has picked up a 14.5 per cent stake in the Jhawars-promoted Usha Beltron Ltd (UBL) for a consideration of around Rs 17.7 crore, according to information available with the Bombay Stock Exchange.

In addition to picking up the equity stake, IFC Washington has also provided long-term financial assistance to the company in the form of debt of around $20 million (approximately Rs 100 crore).

The promoters of the company have also simultaneously picked up a similar quantum of shares at Rs 33 per share, in accordance with the guidelines of the Securities and Exchange Board of India (Sebi). The shares have a face value of Rs 5 each.

 

The shares, which were issued on preferential basis, would increase the equity of the company, from Rs 13.21 crore at present to about Rs 18.66 crore.

Usha Beltron Ltd (UBL), the flagship of the Rs 1,500 crore Jhawar group, has been on a major financial restructuring programme with the objective of swapping its short-term liabilities with long-term debt.

According to officials, this exercise will enable the company to bring down its interest burden, which currently stands at around Rs 80 crore, and have a more uniform payback period for its debts.

Usha Beltron had been considering various options to restructure its capital as the equity was unevenly poised against the company