Hope Floats for Dis­tressed Play­ers

Debt-laden firms may find con­di­tions con­ducive to sell as­sets and raise funds

The Economic Times - - Markets -


The over 1,000-point rise in the Sen­sex over the last seven days could well be what the doc­tor or­dered for some of In­dia’s debt-laden com­pa­nies which have at­tempted to sell part of their as­sets, but were strug­gling to close deals. Now with the up­swing in mar­kets and an im­proved out­look, these com­pa­nies may be bet­ter placed to ne­go­ti­ate as in­vestors would be will­ing to pay more be­sides open­ing up av­enues for fund rais­ing from the cap­i­tal mar­kets. ET In­tel­li­gence Group as­sess the prospects of some of these com­pa­nies. De­spite divest­ment in a cou­ple of road projects and a power project, GMR In­fra’s debt is still at el­e­vated lev­els. The com­pany is now ex­e­cut­ing an ‘as­set light, as­set right’ strat­egy marked by a fo­cus on re­duc­ing its bal­ance sheet debt through as­set sale and im­proved cash f lows.

JP As­so­ciate* Debt 1 week (` Cr) gain (%)

Lanco In­frat­ech 33,908.41 GMR In­fra GVK Power

Su­zlon En­ergy

55,378.00 40,139.68 20,021.62


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