International Finance Corporation (IFC) plans to invest up to $30 million (Rs 205 crore) in chemicals firm Camlin Fine Sciences Ltd to finance the development of a new unit, as well as for other purposes.
The capital infusion in the listed firm will be through debt and quasi-equity instruments, the World Bank’s private-sector investment arm said in a disclosure.
Mumbai-headquartered Camlin Fine Sciences is a provider of shelf-life extension solutions including antioxidants, aroma ingredients and performance chemicals.
The company would use the funds from IFC for development of a new facility at Dahej in Gujarat to produce diphenols. Besides that, the funds would be deployed for working capital requirements for growth in sales of new products and re-financing of a term loan.
Ashish Dandekar, managing director of Camlin Fine Sciences, along with his family and related entities, owns about 22.3% stake in the company.
The company’s consolidated revenue from operations stood at Rs 722.76 crore in the year through March 2018. A year earlier, the figure was Rs 546.86 crore. Numbers sourced from stock exchange filings.
In July 2017, Camlin Fine Sciences had acquired a 51% stake in Chinese chemical firm Ningbo Wanglong Flavors & Fragrances Company Ltd for $6.28 million (around Rs 40.5 crore) in cash.
Recent investments by IFC
Apart from providing debt financing, IFC also makes direct private equity-style investments in India across sectors. Besides, IFC is an investor in private equity and venture capital funds focused on India.
In May, Azure Power Rooftop (GenCo.) Pvt. Ltd had raised $45 million in debt funding from IFC.
In the same month, IFC proposed to make a debt investment of Rs 260 crore ($40 million) in polymer products maker Time Technoplast.