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Hindalco considers raising Rs 6,000 cr to fund expansion

Hindalco has announced to the stock exchanges that shareholders will be considering Rs 6,000 crore NCD issue in the annual general meeting (AGM). This essentially means that they have also put in a proposal to raise the borrowing limit to around Rs 20,000 crore.

Metals producer Hindalco  has been exploring various options to raise USD 1 billion-plus or around Rs 5,000 to 6,000 crore funds. The company has been exploring options of rights issue, bonds and non-convertible debentures (NCD).

Hindalco has announced to the stock exchanges that shareholders will be considering Rs 6,000 crore NCD issue in the annual general meeting (AGM). This essentially means that they have also put in a proposal to raise the borrowing limit to around Rs 20,000 crore.

In order to fund their expansion plans, the net debt at around Rs 58,000 crore and gross debt at Rs 63,000 will surely be daunting for the company. Thus, it is looking to raise the borrowing limit and take in money through the NCD route.

However, this doesn’t essentially bring down their debt, but probably brings down a bit of their interest costs. The company needs the money to be able to expand further.

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