Symphony Limited has announced an additional investment of AUD 25 million (approximately ₹165 crores) in its wholly owned subsidiary, Climate Holdings Pty Limited, Australia (CHPL). This strategic move aims to optimise the debt structure of its Australian operations.
The investment, fully funded through Symphony’s surplus treasury, will be used to completely prepay the outstanding acquisition loan at CHPL, amounting to AUD 20 million (around ₹132 crores). Additionally, it will partially prepay the working capital borrowings of its operating subsidiary, Climate Technologies Pty Ltd, Australia (CTPL), amounting to AUD 5 million (approximately ₹33 crores).
Symphony’s treasury optimisation strategy has been driven by favourable monetary policy measures by the Reserve Bank of India during the investment period. With forward yields on treasury instruments falling below the borrowing costs of its Australian subsidiaries, the company has strategically redeemed these investments. The proceeds are being redeployed to prepay higher-cost acquisition financing and working capital borrowings at its Australian subsidiaries.
The equity infusion is part of Symphony’s broader debt rationalisation actions at CHPL and CTPL. CHPL, incorporated in June 2018, facilitated the acquisition of CTPL and its U.S. subsidiary, Bonaire USA LLC. Over the years, Symphony has transformed its Australian operations, transitioning to an asset-light model and expanding product offerings and distribution reach.
Following the completion of business transformation and a decision to roll back the divestment process, Symphony is addressing residual financial issues of its Australian subsidiaries. The equity investment will lower the debt levels of the Australian operations, making CHPL completely long-term debt-free upon full prepayment of acquisition-related borrowings. Concurrently, CTPL’s working capital borrowings will be reduced to approximately AUD 14 million (around ₹92 crores).
Symphony remains committed to further strategic measures to reduce the residual working capital borrowings at CTPL. The accounting treatment for these transactions will be finalised in accordance with applicable accounting standards in Symphony Limited‘s financial statements for FY 2025-26.
Disclaimer: This article is based on a regulatory filing submitted to the National Stock Exchange of India (NSE).