Jai Balaji Industries Ltd. announced that it has received INR 125 million in funding from Enfield Suppliers Ltd. and Hari Management Limited.
July 04, 2013 at 12:00 am EDT
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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.
On July 4, 2013, Jai Balaji Industries Ltd closed the transaction.
Jai Balaji Industries Limited is engaged in the business of manufacturing of iron and steel products. The Companyâs products include sponge iron, pig iron, ductile iron pipe, ferro chrome, billet, thermo mechanically treated (TMT), coke and sinter with captive power plant. It has eight integrated steel manufacturing units spread across India in the states of West Bengal, Chhattisgarh, Orissa and Jharkhand, and a diverse portfolio of value-added products, including DRI (Sponge iron), Pig iron, Ferro Alloys, Alloy and Mild Steel Billets, Reinforcement Steel TMT Bars, Wire Rods, Ductile Iron Pipes, and Alloy and Mild Steel Heavy Rounds, with a combined capacity of 27,40,000 plus tons per annum. The Company's actual production capabilities include approximately 4,45,000 tons per annum of direct reduced iron (DRI); over 509,250 tons per annum of pig iron; approximately 106,000 tons per annum of ferro alloys, and over 10,20,430 tons per annum of alloy and MS billets.