Commercial vehicle manufacturer Ashok Leyland Ltd said that it plans to raise ₹200 crore by issuing non-convertible debentures or NCDs on a private placement basis in one or more tranches.
In a regulatory filing on Tuesday, the company said that a meeting of the fundraising committee of the board of directors at Ashok Leyland is proposed on Friday, June 19 to consider the plan of raising ₹200 crore via NCDs to shore up liquidity.
Last month, the company had raised ₹400 crore by allotting 4000 NCDs having face value of ₹10 lakh each on a private placement basis.
In another disclosure on June 11, the company said that its net debt as of 31 March was at ₹2,028 crore. “Since then the Company has tied up both long term loans as well short-term loans, which has helped to improve the liquidity position,” the company note added.
Claiming that it has enough liquidity last week, the company said it has been tying up both working capital lines and long-term credit lines with various banks.
“The Management team is closely monitoring the liquidity position of the company to ensure that it is managed efficiently. The company has been meeting its commitments and maintains enough liquidity to take care of necessary obligations. Cash flow forecasts are prepared on a regular basis, which helps to ensure efficient management of liquidity,” Ashok Leyland said on June 11.
The company’s May wholesales crashed 90% YoY at 1,277 units after losing almost 2 weeks to the pandemic-induced lockdown. The wholesales in April were nil.
In an interview to Mint earlier this month, Vipin Sondhi, chief executive officer and managing director, Ashok Leyland said increased infrastructure spends, impetus to the state transport undertakings (STUs) to buy new buses along with an incentive-based vehicle scrappage policy and GST rate cut from 28% to 18% for a temporary period would help in generating demand for commercial vehicles in the domestic market.
