Kamat Hotels (India) Limited announced a major milestone in its financial strategy with the successful refinancing of a portion of its outstanding Non-Convertible Debentures. On March 28, 2024, Kamat Hotels repurchased 19,750 units of its 14% Rated, Listed, Secured, Redeemable, Non-Convertible Debentures (NCDs) from the total outstanding NCDs of 29,750 held by existing NCD holders. The total purchase consideration for 19,750 NCDs amounted to INR 1284.5 million (includes Principal & Interest Cost), maturity date for the remaining NCDs remains unchanged.

Kamat Hotels (India) Limited (KHIL) facilitated this transaction through refinancing, with the support of Axis Finance Limited. This strategic initiative involves securing new debt at 10.75% per annum for a tenure of 12 years with the reducing balance method. The refinancing initiative is in line with the reduction in Interest Cost.

Through this transaction, the Company has achieved the substantial reduction in the Interest cost per annum. As on date, KHIL holds a total debt of INR 1,725.0 million including the refinanced debt from AFL.