Widely read:
Many businesses borrow in foreign currencies, such as the US dollar, to take advantage of ultra-low interest rates in the foreign markets. Such borrowing can be by issuing bonds or by loaning money from a foreign bank.
What looks like a smart move in the short term may come to haunt if the foreign currency appreciates with respect to the native one or the interest rates in the foreign market rise.
The table below lists some Indian companies that borrowed in US dollars a couple of years ago. Because the rupee has depreciated since then, they now have larger loan amounts outstanding. The repayment is due in the next five months. Keep an eye on how these companies deal with the repayment. The companies with high debt on their books may, especially, face some pressure.
| Company | Amount borrowed ($ Mn) | Borrowed on | USD-INR rate | Amount borrowed (Rs Cr) | Maturity date | Amount to be paid (Rs Cr) |
Increase in loan (%) | Debt to equity |
| Radico Khaitan | 15 | 29-Jul-11 | 44.2 | 66.3 | 31-Aug-18 | 101 | 51.8 | 0.78 |
| OK Play India | 7.6 | 29-Oct-10 | 44.4 | 33.8 | 31-Oct-18 | 51 | 51 | 2.16 |
| Deepak Nitrite | 18 | 31-Oct-11 | 48.7 | 87.7 | 30-Nov-18 | 121 | 37.8 | 0.78 |
| Simplex Infrastructures | 10 | 30-Sep-11 | 49 | 49 | 30-Sep-18 | 67 | 37 | 2.17 |
| Asahi India Glass | 10 | 30-Sep-11 | 49 | 49 | 31-Oct-18 | 67 | 37 | 2.45 |
| TVS Srichakra | 15 | 30-Sep-11 | 49 | 73.5 | 31-Oct-18 | 101 | 37 | 0.55 |
| Commercial Engineers | 12.4 | 30-Jan-12 | 49.8 | 61.7 | 31-Aug-18 | 83 | 34.7 | -7.45 |
| Nitco | 8.7 | 30-Apr-09 | 50 | 43.7 | 31-Aug-18 | 59 | 34.1 | -9.64 |
| Polyplex Corporation | 9 | 30/03/2012 | 50.9 | 45.9 | 31-May-18 | 60 | 31.7 | 0.45 |
| Sundram Fasteners | 15 | 30/03/2012 | 50.9 | 76.4 | 31-Oct-18 | 101 | 31.7 | 0.48 |
| Motherson Sumi | 18 | 28-Sep-12 | 52.7 | 94.9 | 30-Sep-18 | 121 | 27.2 | 0.22 |
| Welspun Corp | 30 | 31-Oct-12 | 53.8 | 161.4 | 30-Nov-18 | 201 | 24.7 | 0.82 |
| SAIL | 150 | 30-Oct-12 | 54 | 810.6 | 30-Nov-18 | 1006 | 24.1 | 1.15 |
| Wipro | 150 | 29-Mar-13 | 54.4 | 815.3 | 31-May-18 | 1006 | 23.4 | 0.14 |
| Steel Strips Wheels | 10.7 | 30-Aug-12 | 55.6 | 59.4 | 31-Aug-18 | 72 | 20.6 | 1.99 |
| Aarti Industries | 10 | 30-May-13 | 56.2 | 56.2 | 31-May-18 | 67 | 19.3 | 1.18 |
| Heidelberg Cement | 27.3 | 30-May-13 | 56.2 | 153.4 | 31-Aug-18 | 183 | 19.3 | 0.73 |
| Datamatics Global | 10 | 30-Jul-13 | 60.4 | 60.4 | 31-Jul-18 | 67 | 11.1 | 0.1 |
| Godrej Industries | 20 | 31-Jul-13 | 60.8 | 121.6 | 31-Jul-18 | 134 | 10.3 | 1.78 |
| Endurance Technologies | 10.5 | 30-Jan-15 | 61.9 | 65 | 31-Aug-18 | 70 | 8.3 | 0.13 |
| Flexituff International | 9 | 30-Dec-13 | 62 | 55.8 | 31-Dec-18 | 60 | 8.3 | 1.96 |
| Sadbhav Engineering | 10 | 30-Aug-13 | 66.1 | 66.1 | 31-Aug-18 | 67 | 1.5 | 1.07 |
| Solar Industries | 10 | 30-Aug-13 | 66.1 | 66.1 | 31-Aug-18 | 67 | 1.5 | 0.38 |
| Fortis Healthcare | 30 | 30-Aug-13 | 66.1 | 198.2 | 31-Aug-18 | 201 | 1.5 | 0.15 |
| Data as on May 8, 2018 | ||||||||
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