Hope Floats for Distressed Players
Debt-laden firms may find conditions conducive to sell assets and raise funds
JWALIT VYAS & SURAJ SOWKAR
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
55,378.00 40,139.68 20,021.62