International Finance Corporation (IFC) is planning to invest $20 million (Rs110.9 crore) in Kolkata-based manufacturing firm Ramkrishna Forgings Ltd (RKFL). Although the mode of funding was not disclosed, it is expected to be through debt to part-fund a larger Capex programme.
The fund will be used for the company’s greenfield expansion programme in Jamshedpur that includes a new front axle beam manufacturing line and requires a total of $97 million.
The project will be set up at either of the two sites identified by the firm – the land being leased from Adityapur Industrial Development Authority or a land parcel of 25 acre at Bholadih in Kharsawan, purchased on willing buyer-willing seller basis.
Founded in 1981, RKFL manufactures and sells open and closed plain carbon and low alloy steel forgings for railways, automobile and general engineering purposes. The company, which went public eight years ago, had earlier received funding from Phi Advisors and Ascent India Fund.
IFC is one of the most prolific development financial institutions that invests in multi-asset classes, pitching in as a fund of fund for India-focused PE firms, and also invests directly through equity, quasi-equity and debt route in Indian firms across sectors.