Goldman Sachs invests $17 mn in JK Paper

Goldman Sachs has invested $17 million (about Rs 76 crore) in JK Paper Ltd via its investment arm in Mauritius.

JK Paper last month concluded a $12 million gross depository receipts (GDR) issue and $5 million foreign currency convertible bonds (FCCBs) to part finance its Rs 335 crore expansion plan, said Harsh Pati Singhania, managing director of the company.

Nearly 7.7 million GDRs were placed at a price of Rs 69 per share, representing a premium of 16 per cent over the Bombay Stock Exchange (BSE) closing price on the date of issue.

The FCCBs with a coupon of 1.25 per cent and due in 2011 have a conversion price of Rs 95 per share, representing a premium of 60 per cent over the BSE closing price.

"After IFC Washington's Rs 50-crore investment at Rs 65 per share and Goldman Sachs' Rs 76-crore investment, the company has concluded its equity raising programme for current expansion," Singhania added.