Polestar advises on INR 500 Cr HoldCo Finance for an Indian Conglomerate
Polestar acted as an Exclusive and Sole Advisor to an Indian Conglomerate to raise HoldCo Finance from a large domestic AIF (“Investor”) against their multiple listed group companies.
- Situation - The group needed to refinance some of its HoldCo debt without incurring high cost.
- We assisted the promoter group to raise financing at one of their holding companies by pledging multiple listed group companies.
- The cost of financing was brought down by having a fixed coupon, redemption premium and upside payoff linked to the performance of the flagship Company.
- We helped the Investor diversify the concentration risk by providing collateral over uncorrelated listed companies to reduce the price volatility of the pledged shares.
- Upside was payable only if the stock price performed resulting in win-win situation for both promoter (as the holding value went up) and Investor (higher return).