Nuvoco Vistas plans to raise Rs 1,200 crore for Vadraj buyout
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Mumbai: Building materials company Nuvoco Vistas is planning to raise ₹1,200 crore through a structured funding arrangement to part-fund its ₹1,800 crore acquisition of Vadraj Cement. The money will be raised by issuing compulsory convertible debentures (CCD) and compulsory convertible preference shares (CCPS) in Vadraj after the completion of the acquisition and will replace the bridge facilities taken to fund the deal, people familiar with the matter said. These instruments offer a feature to convert debt into equity. "Out of this ₹1,800 crore of financing which we need to do upfront, we will take a long-term debt of ₹600 crore in Nuvoco's books and then the balance ₹1,200 crore will be through instruments like CCDs and CCPs which will be on a long-term maturity," the management said during a recent investor call. The company has hired Trust Capital as the arranger for the fundraising. Nuvoco did not respond to a request f...