ABSTRACT
In September 2020, Bhanu Pratap Sharma, CFO of Baramati Power Ltd (BPL) and his team members were busy evaluating financing options to refinance debt and financing organic and inorganic growth opportunities. The year gone by was quite turbulent, and it stretched the finances of the best of the businesses. Prolonged lockdowns led to a crash in demand, and that in turn adversely affected the revenues and cash flows of BPL. The finance team led by Bhanu had the task to explore innovative financing options to ensure minimum equity dilution and avoid excessive borrowing to prevent adverse impact on credit rating that might increase the cost of capital. The presence of such constraints reduced the flexibility for fundraising. Prevailing global market scenario, liquidity conditions, regulatory environment and investors appetite were the critical factors in structuring funding instruments.
