Sesa Sterlite seeks shareholders' nod to up borrowing cap to Rs 80,000 crore

NEW DELHI: Metal major Sesa Sterlite on Monday sought shareholders’ nod to enhance its borrowing limit to Rs 80,000 crore for funding needs in group firms and buying out government’s residual stake in Hindustan Zinc and Balco.

The Anil Agarwal-led firm’s Board has, in the last week, already passed an enabling resolution to increase the limit by 33.3 per cent from Rs 60,000 crore. Elaborating the rationale, it said in a BSE filing, the enhancement of limit was aimed at meeting funds requirements of all the group divisions such as iron ore, iron making, copper, aluminium production and commercial power generation.

The need is also there for meeting fund requirements to repay existing debt and for proposed capital expenditure of the group including subsidiary, associate firms and its "buy out of the balance stake of HZL and Balco and for general corporate purposes..." it said.

"...the company may require to borrow from time to time by way of loans ... and the existing approved limit may likely to be exhausted in near future and it is, therefore, recommended to enhance the borrowing limits of the company up to Rs 80,000 crore," Sesa Sterlite said.