VCCircle

Kolkata-based publicly-listed steelmaker Jai Balaji Industries has diluted 15 per cent stake to raise Rs 273.25 crore from Citigroup Venture Capital International and India Equity Partners. This is part of the company's Rs 587 crore fund-raising programme. The remaining amount is being raised from promoters.
CVCI and India Equity Partners, respectively, will be subscribing to 6.12 million and 2.24 million compulsorily convertible debentures of Rs 326.90 each, which will be converted into one equity share for each debenture. This will aggregate to Rs 273.25 crore, representing 11 per cent and 4 per cent of the diluted equity share.
The company will simultaneously issue 9.6 million warrants at Rs 326.90 each to promoters and others to be converted into one equity share within a period of 18 months.
Jai Balaji is setting up a 48 mw power plant, 1.2 million tonnes pellet plant and a ferro alloys plant at Durgapur. It had also recently acquired the steel division of HEG in Chhattisgarh and also bought out a 100 per cent stake in Nilachal Iron & Power in Jharkhand. It had sales of Rs 1,073 crore and a profit after tax of Rs 62 crore for the full year ended March 31, 2007. (See Business Standard for more.)