Planning QIP in late Oct to raise Rs 130cr: McLeod Russel

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Planning QIP in late Oct to raise Rs 130cr: McLeod Russel

Sources say that Borelli Tea is selling a 7% stake in Mcleod Russel to Capital International. Aditya Khaitan, MD of Mcleod Russel says that Capital International now holds 5% in the company. The money raised will be used to pay debt, he says.

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Excerpts from Bazaar on CNBC-TV18 Watch the full show » ALSO READ See latest News about Mcleod Rus See previous management interviews See what other Experts & Brokerages are saying about Mcleod Rus Nifty BSE | NSE 29/05/12 Are Mutual Funds betting on Nifty? Other Stocks in this news Williamson Tea Assam |

Sources say that Borelli Tea is selling a 7% stake in Mcleod Russel to Capital International. Aditya Khaitan, MD of Mcleod Russel says that Capital International now holds 5% in the company. The money raised will be used to pay debt, he says.

He says that they are planning a QIP (Qualified Institutional Placement) in late October to raise Rs 130 crore.

Khaitan also says that the total debt stands at Rs 460 crore, and they plan to cut it by Rs 200 crore in FY07.

Excerpts from CNBC-TV18's exclusive interview with Aditya Khaitan:

A: Yes, Borelli is owned 100% by Mcleod Russel, which in turn was holding 70% of Williamson Tea . So it is actually a subsidiary of McLeod Russel, and we have placed 2.7% to Capital.

The money is actually going to come into McLeod Russel to repay the debt component. This is very much in the line with our plans that we had earlier announced of debt reduction, where we had earlier placed some shares with Capital in early July and again we have done the same. So it seems that we are on track with our debt reduction plan.

A: 2.3% was placed earlier with them and 2.7% now, so I guess they own about 5% of the company. The money that will be raised this time is approximately Rs 30 crore. The entire money raised now, and previously, has all gone towards the repayment of debt.

A: The interest outgo this quarter will come down by approximately Rs 7-8 crore uptill now. We have repaid this year, from April till October, close to Rs 90 crore back to the institution. The next plan of action is a QIP (Qualified Institutional Placement) sometime in late October to raise about Rs 130 crore, which again is going towards debt repayment.

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