Company reported solid numbers. 40% sales growth with humongous PAT
But there is one pain point
Company’s debt stands at 237 croree and board has approved another 500cr fund raise via NCDs. Possibly, NCD proceeds will be used to refinance the debt. Current interest rate > 12%.
Company announced 12rupees per share as dividend.Thats about 80crores as dividends expense. With 60% of company resting with promoters, 48 crores is going back to promoters as dividends. Why not use this money to repay the debt and lower the borrowing envelope. As per FY 22 annual report, promoter family already took remuneration of 35cr all members put together.
Is this not value destructive for minority share holders? Views are invited. My analysis may be wrong.
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