Board Meeting update:
Kitex Apparel Parks Limited being subsidiary company has signed the consortium of rupee term loan for expansion project in the state of Telangana on January 5, 2023 for an amount of Rs. 2023 crores plus Rs. 10.94 crores as CEL facility with the State Bank of India being the lead banker to the consortium of rupee loan along with Union Bank of India, Bank of Baroda, Axis Bank and Exim Bank.
See the board meeting minutes here.
This is a really big bet and will lead to an additional annual interest outgo in excess of 150 Crore once this loan is fully availed(i have not considered any interest subvention / other benefits as claimed by management earlier due to lack of credible supporting details). I can only hope at this stage that the management has incremental order visibility to of atlest 500 to 700 Crore from the new textile park. Note that the current annual PBT is just above 150 Crore.
Disclosure: Remain invested.
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