Kesoram Industries to raise high-cost funds via FDs; to offer 12.25% rate

To offer 12.25% rate; plans to use proceeds for working capital, pare debt

Kesoram Industries, owned by Manjushree Khaitan, daughter of late Basant Kumar Birla, is raising three-year deposits by offering a coupon rate of 12.25 per cent per annum. The company, which has a total cement capacity of 10.8 million tonnes per annum, plans to use the proceeds for its working capital requirements.
 
The company is raising high-cost fixed deposits after it recently raised Rs 400 crore as rights issue to repay non-convertible debentures (NCDs) of Rs 55 crore and prepay optionally convertible debentures worth Rs 294 crore. The fixed deposit rates are far higher than what is currently being offered