Citi arm, Henderson buy 10.4% in Jubilant

CVC International, a unit of Citigroup Global Investments, and HPC (Mauritius) Ltd, an investment arm of Henderson Investment Management, are together acquiring a 10.4 per cent stake in the Shyam and Hari Bhartiya-promoted Jubilant Organosys Ltd for a total value of Rs 225 crore.

Citigroup will invest Rs 135 crore (6.24 per cent) in the company, while Henderson will invest Rs 90 crore (4.16 per cent). The equity has been placed through the preferential route at Rs 825 per share. The company proposes to use the additional funds to support growth plans and strengthen its financial structure.

The company's board met here and approved the fresh issue of capital. The company is convening an Extra Ordinary General Meeting in the first week of December 2004 to obtain the necessary approval required for the fresh issue of equity.

The size of the proposed issue is 27,27,273 equity shares of par value Rs 5 each with a premium of Rs 820 will represent 10.4 per cent of the post-issue paid up equity.

Commenting on the private placement of equity shares of the company, Shyam S Bhartia, chairman and managing director, said: "Our growth outlook remains strong and the raising of further capital will strengthen our financial structure enabling us to rapidly pursue and implement our corporate initiatives. We are delighted to have high quality investors like Citigroup and Henderson as equity holders in the Company.