Twitter
Advertisement

Jai Balaji promoters may offload 5%

The promoters of Jai Balaji Industries are open to dilution of 5% equity to mop up about Rs 300 crore for part-financing the firm’s steel projects

Latest News
article-main
FacebookTwitterWhatsappLinkedin

KOLKATA: The promoters of Jai Balaji Industries are open to dilution of 5% equity to mop up about Rs 300 crore for part-financing the firm’s steel projects in Chhattisgarh and West Bengal.

Chairman and managing director Aditya Jajodia said, “We can go for dilution of our holding to the extent of about 5%, but that would happen only after the sentiment in the market improves.”

The promoters currently hold 63.93% stake in the company. Firm is setting up a 1 mtpa integrated steel plant in Chhattisgarh. It is scouting for land near Bhilai for the facility and has signed a memorandum of understanding with the Chhattisgarh government to this effect.

The steel manufacturer is exploring possibilities of iron ore and coal linkages with the National Mineral Development Corp and Coal India.

The linkages will serve not only the Chhattisgarh plant but also the Rs 16,000 crore integrated steel plant planned at Purulia in West Bengal.

The 5 mt plant at Purulia will be 70% debt-funded. Work on the first phase, on 1,200 acres, will commence in November and see the setting up of a 2 mtpa plant in 3 years.
The total area required for the project is 4,000 acres. The West Bengal Industrial Development Corp is undertaking the land negotiations and 700-800 acres have been allotted.

Investments in Phase I will be about Rs 6,000 crore, of which Rs 1,800 crore will be funded through internal accruals and equity and the balance through debt.
Jajodia said efforts will be made to mainly use internal accruals from the cash-flows of its existing plant at Durgapur. About Rs 400 crore will be used as the base capital from the existing unit.

The company is scouting for acquisition of mines in Chhattisgarh, Orissa and Jharkhand.
The Durgapur plant is undergoing expansion, which will entail a total investment of Rs 1,055 crore.

Part of the Rs 587 crore raised through the preferential route will be invested in expansion of the Durgapur plant’s capacity, while the balance will be funded through debt and internal accruals.

The company on Thursday approved a dividend of 10%. For the first quarter, it reported a net profit growth of 96% year-on-year to Rs 46.40 crore, riding on an 86% rise in net turnover to Rs 464.13 crore.

m_madhumita@dnaindia.net



 

Find your daily dose of news & explainers in your WhatsApp. Stay updated, Stay informed-  Follow DNA on WhatsApp.
Advertisement

Live tv

Advertisement
Advertisement