The outstanding loans of TajGVK Hotels & Resorts Ltd were monitored by the rating agency ICRA with further implications. Since the company is considering borrowing, the short and medium-term development of the company will have an impact on further borrowing.
As of March 31, 2021, TajGVK’s gross debt excluding lease liabilities was ₹ 180.9 billion. As of August 2, 2021, TajGVK had unused working capital lines amounting to 28 billion. TajGVK had insignificant cash on hand as of the reporting date.
Also Read: TajGVK Hotels Q1 Loss at ₹ 9 cr; To raise ₹ 250 cr, is considering selling assets
TajGVK’s board of directors approved a proposal to borrow up to 250 billion yen through debt, QIP, preferential issuance or monetization of assets on Aug. 6, 2021, subject to required regulatory approvals and shareholder approval. However, clarity on the timing of funding and end use is expected. Even if the injection could improve the company’s liquidity position, the extent of the improvement and the extent of the deleveraging remains to be seen. ICRA will continue to monitor developments and take appropriate rating measures, she said. While the company experienced a sequential recovery in the third quarter of FY2021 and the fourth quarter of FY2021 after a weak H1 FY2021, performance in the first quarter of FY2022 was again impacted by the second wave.
