Specialty chemicals major DCW raises Rs 410 crore via NCDs

Mumbai (Maharashtra) [India], March 8 (ANI): Specialty chemicals major DCW Ltd said on Monday it has completed refinancing of its debt with issuance of non-convertible debentures (NCDs) totalling Rs 350 crore and optionally convertible debentures (OCDs) to be converted into equity within 18 months amounting Rs 60 crore.

DCW (earlier known as Dhangadra Chemical Works) will utilise the funds in refinancing the existing term loans and augment working capital.

The company expects this fundraise to enhance capacity utilisation and meet increasing product demand. These NCDs carry a moratorium of 18 months and a tenure of six years.

Chief Financial Officer Vimal Jain said DCW saw strong investor interest for NCDs and OCDs, and could manage the fundraise at favourable terms.

"Through these transactions, the company extended its debt stack maturities and added additional liquidity to the balance sheet. DCW's credit profile remains stable with positive bias."With the completion of this refinancing, said Jain, the company has managed to enhance financial flexibility and is on a firmer footing to achieve long-term growth.

DCW is a specialty chemical company manufacturing PVC, C-PVC caustic soda, soda ash and synthetic iron oxide pigment. It is the only domestic manufacturer C-PVC, a versatile thermoplastic used mainly for manufacturing hot and cold-water pipes, industrial liquid handling and a wide range of products serving a variety of applications.

DCW's caustic soda, SIOP and PVC units are in close proximity to the Tuticorin Port in Tamil Nadu, giving the company a competitive edge over its peers to export products to global markets. (ANI)