United Spirits to raise Rs750 crore to balance debt
New Delhi: Diageo-owned United Spirits Ltd (USL) plans to raise Rs750 crore from the market to balance its debt by issuing non-convertible debentures.
The company will seek approval from its shareholders in its proposed annual general meeting (AGM) on 30 August at Bengaluru to issue debentures having a face value of Rs10 lakh each.
The money would be used for “repayment of existing loans, capital expenditure and other funding requirements of the company from time to time,” USL said in a regulatory filing.
The board of directors at the meeting held on 21 January 2017 had inter alia approved to borrow up to Rs750 crore by way of issuing non-convertible debentures (NCDs).
“Further, the board of directors at their meeting held on 23 July 2017 approved to issue up to Rs750 crore unlisted NCDs on private placement,” the company added. NCDs would be maximum for three years and its interest rate would be decided by the board/committee of the company.