Mirza Tanners prepays loans

Mirza Tanners Ltd, manufacturers of Red Tape shoes, has redeemed cumulative preference shares worth Rs 15 crore, issued at higher coupon rate to IDBI and IDBI Bank Ltd before due date of redemption, out of internal accruals as well as by issues of non-convertible debentures on private placement at a very competitive coupon rate.

The new interest rates are much lower than the dividend the company was previously paying out to the FIs. The resultant benefit would be that this would reduce cost of borrowed funds and also strengthen its financials in the current financial year.