Kamat Hotels India Ltd achieves significant interest cost savings through refinancing of Outstanding Debentures

Kamat Hotels (India) Limited (KHIL), a leading player in the hospitality industry, announces a major milestone in its financial strategy with the successful refinancing of a portion of its outstanding Non-Convertible Debentures ("NCDs").

On March 28, 2024, Kamat Hotels repurchased 19,750 units of its 14% Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) from the total outstanding NCDs of 29,750 held by existing NCD holders. The total purchase consideration for 19,750 NCDs amounted to Rs. 128.45 crores (includes Principal & Interest Cost), maturity date for the remaining NCDs remains unchanged. Kamat Hotels (India) Limited (KHIL) facilitated this transaction through refinancing, with the support of Axis Finance Limited ("AFL"). This strategic initiative involves securing new debt at 10.75% per annum for a tenure of 12 years with the reducing balance method. The refinancing initiative is in line with the reduction in Interest Cost. Through this transaction, the Company has achieved the substantial reduction in the Interest cost per annum. As on date, KHIL holds a total debt of INR 172.50 crores including the refinanced debt from AFL.

Commenting, on this strategy of refinancing Dr. Vithal Venketesh Kamat, Executive Chairman & Managing Director of Kamat Group said, "We're pleased to announce the successful refinancing, underscoring our commitment to financial stability and growth. This strategic move reflects our dedication to optimizing shareholder returns and strengthening our financial foundation."

Additionally, Vishal Vithal Kamat, Executive Director of Kamat Group said," We're thrilled to announce the successful refinancing with Axis Finance Limited, resulting in significant savings in Interest cost. This reduction in interest costs is a testament to our consistent performance and overall stability in revenue generation, supported by our team's relentless efforts in achieving a capital-efficient structure. Ensuring the efficient management of borrowing costs is fundamental to our capital management program, and this transaction serves to strengthen the Company's strategic approach. Last but not least, I would like to extend my gratitude to our investors and team for their unwavering support and dedication throughout this process."

Shares of Kamat Hotels (I) Limited was last trading in BSE at Rs. 297.35 as compared to the previous close of Rs. 289.50. The total number of shares traded during the day was 12289 in over 704 trades.

The stock hit an intraday high of Rs. 300.00 and intraday low of 286.00. The net turnover during the day was Rs. 3603932.00.

Source : Equity Bulls

Keywords

KamatHotelsIndia INE967C01018 NCDs Refinancing InterestCostSavings