Kalpena Industries, a manufacturer of PVC compounds, is raising upto Rs 9.21 crore from two private equity funds. The investors are Banyan Tree Growth Capital and Dutch entrepreneurial development bank FMO. Kalpena, a listed entity, is issuing 9,50,000 compulsory convertible
debentures (CCDs) to at an offer price not exceeding Rs 97 per CCD which is convertible into one equity share.
The two funds will pick up around 7.6% stake in the post-issued capital of Kalpena Industries upon conversion of the CCDs.
The deal will be considered at a meeting of company's board of directors on March 19. Kalpena Industries has also called for an extra-ordinary general meeting.
Banyan Tree Growth Capital is a $125 million mezzanine fund. Banyan Tree and FMO also teamed up for another transaction earlier this year when they invested in synthetic rope manufacturer Axiom Impex ltd. The two funds have invested $7.5 million convertible bond and a $6.35 million secured loan in the company.
Kalpena Industries is involved in manufacturing of PVC compounds which are used for manufacturing cable, footwear and pipes. The company was established in 1994 and is headed by Sushil K.Verma.