With the prepayment, SLPL will save around Rs.250 crore in interest payment, which will strengthen Swan group's balance sheet leading to a possible upgrade and re-rating.
Post prepayment, SEL's debt has come down to Rs. 1675 crore. The external debt position of the group was ~Rs.4128 crore in September 2023, which reduced to ~Rs.3817 crore in December 2023. To facilitate the pre-payment, SEL has lent Rs.2210 crore to SLPL.
SEL has recently raised Rs. 3,000 crore through a Qualified Institutions Placement (QIP). The funds raised through the QIP will be strategically deployed towards the modernization of the recently acquired erstwhile Reliance Naval and Engineering (RNEL) shipyard at Pipavav. Additionally, a portion of the funds will be allocated for project expansion and debt reduction.
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