BN Holdings has entered into a comprehensive loan agreement with GRFI Holdings, securing a loan of ₹336.12 crore (USD 40 million). This strategic financial move is aimed at further strengthening BN Holdings’ financial position and expanding its operational capabilities. The agreement provides GRFI Holdings with certain special rights, including the authority to appoint a non-executive director to BN Holdings’ board, enhancing GRFI’s oversight and influence in the company’s decision-making processes.
The agreement also involves amendments to the terms of the existing Foreign Currency Convertible Bonds (FCCBs) previously issued by BN Holdings. The conversion price of these FCCBs has been revised to ₹46.35 per share, making the bonds more aligned with current market valuations. A total draw-down amount of ₹285.7 crore (USD 34 million) has been agreed upon, with the remaining funds providing further capital for BN Holdings’ future growth and development.
The FCCBs under this loan agreement have a maturity period of 60 months, with a redemption value set at ₹336.12 crore. This structure provides BN Holdings with a five-year horizon to manage and optimize the utilization of these funds, facilitating both its short-term and long-term objectives.
The partnership between BN Holdings and GRFI Holdings is expected to bring financial flexibility and drive business expansion, with the significant investment signaling confidence in BN Holdings’ market potential and growth trajectory.
