Hubergroup India, a global expert in printing inks and chemicals, is actively negotiating with lenders such as ICICI Bank, HDFC Bank, Axis Bank, Tata Capital, Axis Finance, and ICICI Prudential Credit Fund, to secure Rs 1,500 crore in working capital, amortising funds, and bullet loans, with expected interest rates ranging from 9-14 per cent, according to a report by The Economic Times (ET). A significant portion of the funds is earmarked for acquiring businesses from its German parent, with the goal of establishing Hubergroup India as the flagship entity for the entire group.
The proposed funding structure outlines Rs 500 crore from banks for working capital at approximately nine per cent interest rates; Rs 500 crore from non-banking financial company (NBFC) for amortising loans at 10-11 per cent interest; and Rs 500 crore from a private credit fund for bullet loans at 13-14 per cent. According to ET the debt raise could be concluded as early as the following week.
Potential lenders include ICICI Bank, HDFC Bank, and Axis Bank, among banks. Tata Capital and Aditya Birla Finance are among the NBFCs, while ICICI Prudential Credit Fund and Axis Finance are some of the private credit funds the group is in discussions with
The funds secured through this process are intended for the strategic acquisition of businesses from the parent company. In 2005, Germany-based Hubergroup acquired Micro Inks, solidifying its position as a market leader in the Indian print market with a 30 per cent share. At the time, compensatory growth in packaging ink was anticipated due to the rise in FMCG and e-commerce industries. This offset volume loss in the printing ink segment after consumers shifted toward digital sources for newspapers.
