Cement manufacturer Kesoram Industries is seeking bids Monday for as much as ₹1,604 crore ($221 million) of notes that matures in February 2026, according to people with knowledge of the matter, who asked not to be identified. The proposed securities are rated D by Crisil and carry a coupon that increases in stages the longer they are outstanding, the people said.
Kesoram Industries defaulted on debt last year and the company’s finances have worsened amid intense competition in the cement business. The Kolkata-based company, whose history dates back over 100 years, this month allotted equity shares and preference securities to 10 creditors as part of its plan to restructure its debt.
In India’s corporate bond market, state-owned issuers or companies that have high ratings typically dominate debt offerings.
Proceeds from Kesoram Industries planed offering will be used in part to repay existing loans and overdue liabilities. The company hadn’t complied with certain financial covenants and defaulted on ₹4,600 crore of debt as of Dec. 31, the company said in a statement last month.