Jai Balaji Industries Ltd. (BSE:532976) announced a private placement of prepaid warrants for maximum gross proceeds of INR 500,000,000 on September 28, 2012. On the same day, the board of directors of the company approved the transaction. The securities will be issued on preferential basis. The warrants will be convertible into one common share of the company and will mature in eighteen months from the date of the allotment. The company will receive 25% of the total amount, which is INR 125,000,000, as upfront payment at the time of allotment of warrants and the remaining 75% will be paid within eighteen months. If the investor is not able to pay the 75% within the maturity period then the warrants will expire and the upfront payment paid shall be forfeited.

On October 4, 2012, the board of directors of the company approved issue of 10,000,000 prepaid warrants at INR 50 per warrant to the promoters and promoter group companies.

On December 18, 2012, the company announced that the transaction was approved in the 13th annual general meeting of the shareholders. The existing investors including Enfield Suppliers Ltd. which will purchase 1,900,000 prepaid warrants and Hari Management Limited which will purchase 8,100,000 prepaid warrants will participate in the transaction.