Jain Irrigation System raises Rs 289 cr from Mandala Capital

Jain Irrigation Systems Ltd has raised Rs 289.6 crore from agri-business funding firm Mandala Capital Ltd to repay its borrowings.
This fund raising is part of a total equity investment of USD 120 million, including an investment by Mandela in Jain Farm Fresh Foods Ltd (JFFL), a wholly-owned subsidiary of JISL under which its global food business is being organised, JISL said.
"Jain Irrigation Systems Ltd (JISL) has made a preferential issue of Compulsorily Convertible Debentures (CCDs) with a 5 per cent annual coupon to Mandala for a total subscription of Rs 2,896 million (Rs 289.6 crore)," the company said in a regulatory filing.

The CCDs will be converted into ordinary equity shares of JISL within 18 months from the date of allotment at Rs 80 per share, it added.
The company said it will use these funds as agreed under the agreement with Mandala for the purpose of repayment of its borrowings.
"The equity investment will help us further deleverage and strengthen our balance sheet, generate substantial reduction in the annual interest cost and improve our operational liquidity," JISL Managing Director Anil Jain said.

He added that the investment of around USD 60 million into JFFL soon.
In December last, the shareholders had approved the proposal to raise Rs 289.6 crore from agri-business funding firm Mandala by issuance of debentures.

Jain Irrigation is engaged in manufacturing of micro irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs since the last 34 years.