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| Jai Balaji Ind raises Funds through QIP for Projects in Bengal |
| Announcement / Corporate Oct 26, 2009, 19:56 IST |
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Jai Balaji Industries Limited (JBIL), the flagship company of 2500 Cr Jai Balaji Group, has raised Rs 198.50 Cr through Qualified Institutional Placement (QIP) of Shares. Some of the most reputed investors have majorly participated in this round, namely Halbis - 37% , GMO - 16% , Reliance AMC - 16%, New Vernon - 9%, JF Investors - 8% and UBS GAM - 7%, others include Hammon , IIFL – Emerging India Focus Fund Singapore, Kotak AMC and United Bank of India. This is the second time JBIL has raised funds for its projects -- the first round was in February 2008 when JBIL raised close to Rs 273 Cr from Citi Venture Capital International and India Equity Partners through Private Placement of shares.
This round of placement of equity shares increases the stake of FII/FDI/FI holding to close to 30% in the company having majority of its operations in West Bengal.
JBIL is the largest private sector player of Steel in West Bengal and is now poised to consolidate its position further with the new funds raised. The funds raised will be utilized for completion of its Ductile Iron Pipe Plant and Coke Oven Plant at Durgapur in West Bengal and for development of Mines allocated to the company. JBIL is also in the process of starting its Purulia Steel Plant of 5 million tonne integrated steel plant, 3 million tonne cement plant and 1,215 MW captive power plant. The project, once completed, will be one of the largest and most modern steel plants. The project single-handedly will be able to usher in industrial activity and economic development of the Purulia district. The project will lead to setting up of many ancillary units in the district and will generate direct and indirect employment to another 45000-55000 people. The Cement plant of 3 million tonne will be one of the largest in the state -- a necessity in view of the large infrastructural development activities being undertaken in the state. The project will be iconic in nature and will attract further investments into West Bengal.
Jai Balaji started its operations in West Bengal in the year 1999 with a unit at Ranigunj. Since then the company has continuously expanded or rather multiplied its operations and now ranks amongst the top ten steel producers in the country and is one of the fastest growing steel companies in India.
The company has recently announced significant increase in production from their existing plants as compared to last year.
JBIL Management along with the excellent project execution team has delivered One million ton fully integrated Steel Plant and Ferro Alloys Plant along with Captive Power Plant and Private Railways Siding within a very short period of 4 years. The company has also expanded geographically and now has presence in three states namely West Bengal, Jharkhand and Chhattisgarh. The major facilities are located in the state of West Bengal. This achievement highlights the Financial, Technical and Project execution skills of the management to successfully execute large projects within record time. The Group already created direct and indirect employment opportunities in excess of 30000 people in the state. The corporate social responsibilities and social welfare activities undertaken by the company are clearly evident from the welfare of the people in the district. With project execution skill, financial and technical strength, active support from the State Government and the goodwill generated in the people through its existing social welfare activities, JBIL is confident of completing all its projects successfully.
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