Restructuring package of engineering PSU Andrew Yule, which was referred to BIFR, has been completed post the conversion of Bank of Baroda's loan into equity and the company is now looking at higher profits, a top official said.
"Following the recent conversion of BoB's term loan into equity, the restructuring package of Andrew Yule prepared by BIFR is now complete," Sunil Munshi Director (personnel) holding additional charge of CMD told PTI.
He said earlier State Bank of India's term loan was converted into equity. "Following both the conversions, the company will now be able to save on interest outgo and can look for more profitability," Munshi said.
Munshi said the company would now be able to raise finance from banks more easily and embark on expansion in tea and electrical engineering projects.
On the financial performance during the just-concluded fiscal, Munshi said profits would be slight lower than the previous fiscal due to general slowdown in the economy and rising input costs.
He said as per the new guidelines of markets regulator SEBI, the state-owned corporations would have to reduce government stake to 75 per cent by August 2018.
The government holding in Andrew Yule stands at 88 per cent.
"The completion of the restructuring package will help in improving the balance sheet, which in turn will boost the share price," he said.
Andrew Yule was looking to expand tea business by opening more lounges, particularly in the north-eastern cities and a green tea factory in Dooars region in West Bengal.
