Citi Venture and India Equity Partners to take stake at JBI

Kolkata, Dec 17 (UNI) Citi Venture Capital Fund and India Equity Partners have decided to invest in Jai Balaji Industries Ltd by subscribing to compulsorily convertible debentures of Rs 326.90 each respectively to be converted into one equity share per debenture aggregating to Rs 273.25 crore.

The company will simultaneously issue 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 the funding required for its expansion plans.

The preferential allotment is subject to approval of the shareholders in the coming EGM.

Jai Balaji Industries had achieved a turnover of Rs 527 crore and a profit after tax of Rs 51 crore for the half year ended September, 2007, as compared to a turnover of Rs 1073 crore and profit after tax of Rs 62 crore for the full year ended March, 2007.

The company had recently acquired steel division of HEG Ltd in Chattisgarh and purchased 100 per cent stake in Nilachal Iron&Power Ltd in Jharkhand for expansion of business in all mineral rich states of Eastern India.

Jai Balaji Industries had also recently signed an MOA with the West Bengal government to set up an integrated steel plant, a power plant and a cement plant with an aggregate investment of Rs 16,000 crore in the state.

UNI