Sakthi Sugars plans to monetise certain non-core assets and to use the proceeds for reduction of liabilities to lenders. The current debt of the company is around Rs 600 crore and the company plans to bring it down to Rs 400 crore, says MD M Manickam. The company currently holds non-core assets worth Rs 100 crore.
Below is verbatim transcript of the interview:
Q: What is the total value of your non-core assets and how much of that monetisation can you achieve in FY15?
A: We are looking at traditional land bank that we have in the company and are also looking at monetising that and one or two other assets. We have got the enabling resolution. We haven’t looked at the quantum that we will be doing. First we will be getting the feedback from the market and then we will decide how much of non-core assets will we be selling.
Q: Have you done a valuation?
A: Valuation is fairly good. We can go up to Rs 100 crore plus but we have not decided how much we are going to sell and clear the liability.
Q: By what maximum amount will you possibly look to reduce your debt? Would it be Rs 100 crore considering the valuation is Rs 100 crore?
A: Yes. It should be minimum of Rs 100 crore.
Q: And the maximum?
A: We are targeting around Rs 100 crore.
Q: What would you entire debt figure stand at, at this point in time?
A: Today with institutions and banks we have about Rs 600 crore
Q: What would you ideally like to bring it down to?
A: We would like to bring it to Rs 400 crore but it will be measure of this plus the operational efficiencies because the cogeneration plant is going to be running independently and so, we expect some generation out of that as well.
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