Arshiya Limited receives debt restructuring package from Edelweiss ARC

In line with the previous announcement of reducing debt and to eventually achieve a debt free status for Arshiya Group, post the demerger of Arshiya Rail Infrastructure Limited from Arshiya Limited, the Company has received a debt restructuring package from its lead lender EARC i.e., Edelweiss Asset Reconstruction Company Limited by way of a Settlement of Debt vide letter dated 4th March 2022. This Settlement of Debt has been approved by the Board at its meeting held on 7 March 2022.

The consolidated debt based on the unaudited accounts, prior to demerger was approximately INR 3,040 crs. After the recently announced demerger into two entities, namely Arshiya Limited (currently listed) and Arshiya Rail Infrastructure Limited (ARIL, yet to be mirror listed, post regulatory approvals) and the Settlement of Debt with EARC the debt implications for Arshiya Limited (currently listed) are as below:

Arshiya Limited's (AL) consolidated debt (including its subsidiaries and Settlement of Debt :

- Debt exposure with EARC now stands at INR 535 crs

- Debt exposure with other lenders which includes priority loans from EARC, will be approximately INR 759 crs

Hence, post the demerger and the Settlement of Debt , consolidated debt of Arshiya Limited and its subsidiaries, now stands at approximately INR 1,294 crs against the erstwhile debt of INR 3,040 crs, subject to terms and conditions of the restructuring package.

Shares of Arshiya Limited was last trading in BSE at Rs. 36.15 as compared to the previous close of Rs. 34.55. The total number of shares traded during the day was 79921 in over 163 trades.

The stock hit an intraday high of Rs. 36.25 and intraday low of 34.75. The net turnover during the day was Rs. 2852515.00.

Source : Equity Bulls

Keywords

Arshiya INE968D01022 DebtRestructuring EdelweissARC DebtSettlement