CCEA Approved Andrew Yule Proposal To Convert Bank of Baroda’s Loan Into Equity

The Cabinet Committee on Economic Affairs (CCEA) cleared conversion of Working Capital Term Loan (WCTL) of Bank of Baroda’s (BoB) 29.91 crore rupees loan to Andrew Yule & Co. Ltd. (AYCL) into equity shares. This approval was granted during the CCEA meet chaired y Prime Minister Narendra Modi.

Price of equity shares will be based on market price determined as per Securities and Exchange Board of India (SEBI) Guidelines on the date of acquiring of shares by Bank of Baroda with face value of 2 rupees per share. This conversion of WCTL will pave the way for disinvestment of the Kolkata-based PSU in the next three months. The conversion of loan to equity would help bring down the cost of servicing of debt by 2.86 crore rupees per annum, resulting in improved profitability and liquidity of Andrew Yule in coming years. This will provide an opportunity to finance working capital needs of existing and new businesses. It will also result in improved Debt Equity ratio for AYCL and will enhance the strength of its balance sheet.

About Andrew Yule & Co. Ltd

AYCL was established in 1863 and it became a Public Sector Enterprise in 1979. It is presently engaged in manufacturing of Industrial Fans, Ventilation Equipment, Power & Distribution Transformers and allied equipment and production of Bulk Tea among others.Paid up capital of the Company is 66.73 crore rupees in which Union Government holding is 87.98%.
Andrew Yule & Co. Ltd – headquartered in Kolkata

Extra info:
Working Capital Term Loan (WCTL)
Securities and Exchange Board of India (SEBI)
Bank of Baroda CEO – P. S. Jayakumar
Andrew Yule & Co. Ltd – headquartered in Kolkata

So let’s do:
1. Expand the WCTL, CCEA, AYCL and SEBI ?
2. Who is the Chairman of Bank of Barodra ?
3. Where is Andrew Yule & Co. Ltd headquater is situated?

Source – The Hindu

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