Top investors snap up Jai Balaji’s QIP

Steelmaker Jai Balaji group, which is setting up a 5 million tonne greenfield plant at Purulia in West Bengal at a cost of Rs16,000 crore, seems to be having no trouble raising the funds, as top global investors like HSBC's Halbis, GMO, New Vernon and UBS Global Asset Management have invested in a qualified institutional placement of Jai Balaji shares.

Helped by the fact that it has already got possession of 1100 acres of land, the company has already raised Rs199 crore through QIPs.

Aditya Jajodia, chairman and managing director of the company, told Reuters on Monday that it is planning to raise Rs1,300 crore as debt over the next six months. "The total cost for the first phase of the steel plant would be around Rs2,700 crore, of which the debt component would be Rs1,300 crore," he said.

"For the remaing amount, Rs1,300 crore would be funded through internal accruals and Rs100 crore through equity," he added.

Under the first phase, a two-million-tonne metals plant, a cement grinding unit and a 400 mw captive power plant would be constructed.

"In the next two years, after the completion of the first phase of the plant, our capacity would increase to 3.25 million tonnes," he said.