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Edelweiss’ distressed assets fund to pick up 5% in Panyam Cements

By Anuradha Verma

  • 01 Feb 2016
Edelweiss’ distressed assets fund to pick up 5% in Panyam Cements

Hyderabad-based Panyam Cements & Mineral Industries Ltd said on Friday it will issue up to 8.43 lakh convertible warrants for around Rs 7.13 crore ($1.05 million) to two group firms of Edelweiss Financial Services Ltd.

The cement maker will issue the warrants to EW India Special Assets Fund Pte Ltd and ECap Equities Ltd, it said in a stock market disclosure.

EW India is a $400 million private equity fund managed by Edelweiss Alternative Asset Advisors Ltd, the investment advisory arm of Edelweiss Financial. It provides distressed capital to companies in India.

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The warrants can be converted into an equal number of shares within 18 months from the date of issue. Upon conversion, the Edelweiss firms will have a 5 per cent stake in Panyam.

The company said also that it plans to raise around Rs 97.8 crore ($14.4 million) by issuing non-convertible debentures to eligible investors in one or more tranches. It didn’t disclose any other details.

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