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Welspun raises INR 700 crore for Vikram Ispat buy

Steel News - Published on Fri, 27 Mar 2009

ET reported that Welspun Power and Steel a Welspun Group company has raised INR 700 crore debt from a consortium of 20 domestic banks to part finance its INR 1,030 crore acquisition of Vikram Ispat from Grasim Industries.

The report cited Mr BK Goenka group vice chairman as saying that the company was able to rein in the average cost of borrowing from 10% to 12%. He added that “We have already tied up with 20 domestic banks to raise INR 700 crore debt. All these banks are providing long and short term loans, varying between INR 20 crore and INR 100 crore.”

He further said that the remaining INR 300 crore would be raised from internal accruals.

Mr Goenka said that the Gujarat High Court is yet to approve the scheme of arrangement between Welspun and Grasim. He said that “We can conclude the deal only after getting the court approval.”

In June last, Welspun acquired Vikram Ispat for INR 1,030 crore after Grasim implemented a restructuring plan by getting out of sponge iron, which it considered non core.

(Sourced from Economic Times)

Posted By : admin on Fri, 27 Mar 2009
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