IMAP India advised Jai Balaji Industries Limited on raising Rs. 550 crore of structured debt to refinance ARC exposures and strengthen its capital structure. The transaction enables Jai Balaji to consolidate its liabilities and position itself for long-term sustainable growth.
Jai Balaji Industries Limited (JBIL) is a fully integrated steel manufacturer with an installed capacity of approximately 1 million tonnes per annum. The company utilizes iron ore as its primary raw material and produces a diverse range of products including sponge iron, pig iron, ferro alloys, TMT bars, and ductile pipes. Its manufacturing operations are spread across West Bengal and Chhattisgarh, serving sectors such as infrastructure, construction, and industrial manufacturing.
Between 2005 and 2011, Jai Balaji undertook aggressive capacity expansion, backed by the booming infrastructure and housing markets. However, the industry downturn from 2012 to 2015, coupled with unsuccessful backward integration efforts, led to financial distress and accumulation of debt. Over the years, a large portion of the company’s debt was acquired by Asset Reconstruction Companies (ARCs).
With improved market conditions and near full capacity utilization in FY24, JBIL focused on financial consolidation and liability management. The Rs. 550 crore structured debt raised by IMAP India, allowed the company to refinance its high-cost ARC debt and transition to a more efficient and sustainable capital structure.
