Kesoram plans recast, may sell tyre unit to cut debt_Kesoram plans recast, may sell tyre unit to cut debt

Kesoram plans recast, may sell tyre unit to cut debt

May 29, 2024

Basant Kumar Birla Kesoram leader Industries is mulling a restructuring plan, which could also include the sale of its high-margin tire unit to reduce its high debt.

This is part of the business restructuring plan. In a recent communication with the stock exchanges, the company said it is exploring options to reorganize and restructure its existing operations.

The company announced the formation of a core committee of three directors, including two outside directors, to evaluate the business reorganization.

Ganguli, Compliance Officer, Kesoram Industries Gautam, told The Economic Times: “The company has today constituted a committee to consider the restructuring and the board will take a decision based on the report submitted by the committee.”

According to Bloomberg, Ganguli added: “The committee will consider measures ranging from capitalization of some business units to reducing debt levels.” Four years.

Analysts say the decision to sell the assets of the tire business appears to be a smart and profitable venture, as the tire company’s fortunes have changed significantly, with shares up 20-113% in the recent rally.

One analyst said. ‘, “The tire business appears to be the company’s most important asset at this time, and tire inventories are being reassessed based on demand potential. Considering the company’s share of the medium and large tire market is close to 15%, the segment is likely to attract bidders from the commercial sector and better valuations could be important to reduce debt levels.

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