HomeNewsICICI Bank sanctions INR 500 Crore debt facilities to Aditya Birla's Novel...

ICICI Bank sanctions INR 500 Crore debt facilities to Aditya Birla’s Novel Jewels for expansion

ICICI Bank has sanctioned INR 500 crore in debt facilities to Novel Jewels, a jewellery retail store promoted by the Aditya Birla group, as reported by ET. This financial support is intended to kickstart the company’s operations in the next quarter, according to individuals familiar with the matter. Furthermore, it was disclosed that the promoter companies infused INR 290 crore into the company last year.

Initially, Novel Jewels will open four to five stores in July, spanning various cities in northern, western, and central India.

Aditya Birla Group’s retail jewellery venture, Novel Jewels, to kick off operations this July

Requests for comments from Aditya Birla Group and ICICI Bank went unanswered.

ICICI Bank, serving as the sole lender thus far, has sanctioned INR 450 crore as a working capital loan and INR 50 crore as a term loan.

Essel Mining and Industries will maintain a 51% stake and inject INR 148 crore in equity capital. Meanwhile, Aditya Birla Chemicals (Thailand) and Surya Kiran Investments will collectively hold 49%, with investments of INR 55 crore and INR 87 crore, respectively. Essel Mining, closely affiliated with the Aditya Birla Group promoters, engages in the mining sector and holds interests in several Aditya Birla group firms via its subsidiary IGH Holdings.

Last June, the group announced its venture into the branded jewellery retail business with an investment of around INR 5,000 crore. They aim to establish large-format exclusive jewellery retail stores across India, showcasing in-house jewellery brands. “The promoters have committed INR 5,000 crore to this endeavor, recognizing its capital-intensive and competitive nature,” said a consultant.

Continue Exploring: Jewellery consumption set for 10-12% value growth in FY24, driven by soaring gold prices: ICRA

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