Hindalco Industries, Aditya Birla Group flagship announced at its forthcoming annual general meeting (AGM) next week that it will seek shareholders approval for the issue of non-convertible debentures (NCDs) on private placement basis for aggregating Rs. 6,000 crores.
Hindalco chairman Kumar Mangalam Birla said in shareholders’ note, “To further bolster the balance sheet, the company has prepaid close to ?8,000 crore of long-term project loans in India. This has led to a significant improvement in the consolidated net debt to EBITDA at below 3x at the end of March 2018.”
Birla noted out that the ongoing government initiatives such as the creation of 100+ smart cities, thrust on infrastructure, especially rural infra development, along with ‘Make in India’ and ‘Digital India’ will continue to support the demand for aluminium and copper.
Birla added that “The terrain ahead could be a tad bumpy depending on the economic and geopolitical environment,” regarding the concerns like rising oil prices, hardening inflation, firming bond yields and widening current account deficit.
Birla also added, “Investors seem to be positive on India’s economic prospects. The foreign direct investment (FDI) flows continue to be encouraging.” He also made a point on the ongoing global trade frictions, particularly between the US and China, are worrisome and can have a spillover negative effect on countries like India.