Sanmar to raise Rs 250 cr to cut its debt

To cut its promoters’ debt and expand its chemical business, Chennai-based chemicals-to engineering conglomerate Sanmar group will raise Rs 250 crore from American private equity fund Kohlberg Kravis Roberts (KKR).

The private equity fund is likely to subscribe to the convertible debentures issued by Sanmar Engineering Technologies, the holding company for the engineering business. The proposed deal encompasses options of conversion of debentures into equity shares and settlement by means of cash at a later date.

The convertible instruments carry assured returns at reasonable rates till they get converted into equity.