The Hindu Business Line : Jai Balaji Ind raises Rs 198.5 cr via QIP

Kolkata, Oct. 26 Jai Balaji Industries Ltd has raised Rs 198.50 crore through Qualified Institutional Placements (QIPs) of equity shares, the Chairman and Managing Director, Mr Aditya Jajodia, said here on Monday.

The placements would bring down the promoters’ stake in the Rs 2,500-crore company from 59 per cent to 51 per cent.

Nearly half the money raised through the QIP would go into infrastructure development at the company’s proposed five million tonne steel plant at Raghunathpur in Purulia and the balance would be utilised for completion of its ductile iron pipe plant and coke oven plant at Durgapur, Mr Jajodia told mediapersons.

“This round of placements has increased the stake of FII, FDI and FI holdings in the company to nearly 30 per cent,” said the Chairman, pointing out that the major investors that had participated in the QIP were Halbis (37 per cent), GMO (16 per cent), Reliance AMC (16 per cent), New Venron (9 per cent), JF Investors (8 per cent) and UBS GAM (7 per cent).

For the first phase of the steel plant in Purulia, involving an investment of Rs 2,700 crore, the company would need to raise nearly Rs 1,300 crore of debt, while the rest would be funded by internal accruals, Mr Jajodia said, adding that there were no further plans of raising money from the market.

The financial closure for the first phase would be completed in six months, he said.

The project, to be developed on 3,700 acres, includes setting up a five million tonne integrated steel plant, a three million tonne cement plant and a 1,215 MW captive power plant at an estimated investment of Rs 3,600 crore.

In the first phase of the project, a two million tonne direct reduced iron and pig iron plant, a 400 MW power plant and the cement plant would come up, he said.

The company produces 1 million tonnes of steel a year.

Land acquired

“We have already taken possession of 1,100 acres for the first phase and are waiting for the environmental clearance,” he said, adding that construction at the project would start in four to six months. The first phase is expected to be completed in 26 months from zero date.

The steel plant in Purulia, when fully operational, would help increase the turnover by Rs 4,000 crore and the ductile iron pipe plant at Durgapur is expected to add Rs 500-600 crore to revenues, Mr Jajodia added.

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