On July 11, 2023, McLeod Russel’s share price gained over 6% after the company’s board approved a contract with Carbon Resources to monetise identified assets. The income will be used towards debt repayment.

In an exchange filing, the company’s board has considered and agreed on the execution of an agreement with Carbon Resources to exclusively deliberate, negotiate and appraise an equally agreeable mechanism for the monetisation of identified assets for a one-time settlement of the debt owed to identified creditors.

At 9:20 am, the stock was trading at Rs 21.30 on the NSE, which rose 6.7% from the earlier close. The stock is now on a three-day winning streak, with a cumulative gain of 12%.
The Kolkata-based carbon manufacturer sent lenders a Rs 1,245 crore non-binding offer to obtain a governing stake in the tea producer.

But that pact did not materialise. Carbon Resources sold its entire 5.03% stake in McLeod Russel in June.
The Khaitans now own a 6.25% stake in McLeod Russel, and the debt stances at over Rs 1,700 crore. The company’s lenders are ICICI Bank, Indian Bank, State Bank of India, RBL Bank, Axis Bank, UCO Bank, HDFC Bank, Punjab National Bank, Yes Bank, and IndusInd Bank.

In Q4 FY23, McLeod Russel posted a combined net loss of Rs 1,078.27 crore, hit by provisioning for remaining inter-corporate deposits (ICDs). In the year-ago period, the net loss had mounted to Rs 192.93 crore.

Revenue from operations in Q4FY23 was Rs 226.04 crore versus Rs 254.24 crore a year back.
McLeod Russel started planting tea in India in 1869, being the largest tea-producing company in the world. Its estates produce 80 million plus kilograms of black tea exported worldwide, part of the financially-stressed Williamson Magor Group.