| Citi Venture Capital Fund and India Equity Partners would be investing by way of subscribing to 61.18 lakh and 22.41 lakh compulsorily convertible debentures of Rs 326.90 each respectively to be converted into one equity share per debenture agreegating to Rs 273.25 crore representing 11 per cent and four per cent of the diluted equity share per debenture allotment. |
| The company would simultaneously issue to the promoters and others 96 lakh warrants at Rs 326.90 each to be converted into one equity share within a period of 18 months. |
| The preferential allotment is subject to approval of the shareholders at the company's forthcoming extraordinary general meeting. The raising of Rs 587 crore would meet the funding required for its expansion plans. |
| Company officials said, the funds would be used for its brownfield projects. Jai Balaji is setting up a 48MW power plant, 1.2 million tonnes pellet plant and 0.25 ferro alloys plant at Durgapur. |
| "This is part of our Rs 2,500 crore expansion programme announced in 2005," they said. Jai Balaji has recently signed a memorandum of agreement with the West Bengal government to set up an integrated steel plant, a power plant and a cement plant at an investment of Rs 16,000 crore. |
| However, the funds would not be utilized for the Bengal project. Company officials said, the Bengal project investment would be made over a 10-year period. |
| The company has recently acquired the steel division of HEG Limited at Chhattisgarh and also purchased a 100 per cent stake in Nilachal Iron & Power Limited in Jharkhand. |
| Jai Balaji recorded a turnover of Rs 527 crore and a profit after tax of Rs 51 crore for the half-year compared to a turnover of Rs 1,073 crore and a profit after tax of Rs 62 crore for the full year ended March 31, 2007. |
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