MUMBAI : United Spirits Ltd said it may file a report with the Board for Industrial and Financial Reconstruction as it expects its net worth to reduce by 36.90 bln rupees, business channel CNBC-TV18 reported.
The company said it has insufficient funds to repay intra group loans, which stood at 47.93 bln rupees as of Mar 31. The firm will have to provide for intra group loans worth 46.52 bln rupees, the television channel reported. Proceeds from the sale of Whyte & Mackay had reduced the group’s gross debt by 370 mln pound sterling (approximately 36 bln rupees), but the sale proceeds were insufficient to repay the intra group loans.
The company sold Whyte & Mackay to Emperador UK Ltd, a subsidiary of Emperador Inc in May. The company said the net proceeds from the sale were 408 mln pound sterling (approximately 40 bln rupees). United Spirits said it will save 3.30 bln rupees per year in interest costs. The company’s gross debt to operating profit ratio will decrease to 3.40 from 6.61, the television channel said. Shares of United Spirits ended up 0.50% at Rs 2850.90 on the National Stock Exchange. -Cogencis