Citi Venture Capital International and Hudson Equity Holdings Limited, a part of India Equity Fund have invested in Jai Balaji Industries Limited by way of subscribing to 6118000 & 2241000 compulsorily Convertible Debentures (CCD) respectively, of Rs.326.90 each. The funds raised by issue of CCDs aggregated to Rs. 273.25 crore. Each CCD is to be converted into one equity share, and on conversion, the holding of Citi Venture Capital and Hudson will be 11% and 4% of the equity capital respectively. In recent months, this is one of the largest deals in the private equity space.

The company has simultaneously issued to the promoters and others, 96 lakh warrants at Rs 326.90 each to be converted into one equity share within 18 months.

This fund raising exercise of Rs 587 crore will meet part of the funding required for the company’s expansion programmes.

The company has recently acquired the Steel Division of HEG Limited at Chhattisgarh and purchased 100% stake in Nilachal Iron & Power Limited in Jharkhand, thereby getting a foothold in two mineral rich states of eastern India.

Jai Balaji Industries has also recently signed a Memorandum of Agreement with the West Bengal Government to set up an integrated steel plant, a power plant and a cement plant at an investment of Rs16000 crore.

Sourced From: Pressman India

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