Jai Balaji Industries Ltd., a leading player in Indian
steel industry, has successfully executed
debt agreement with Tata Capital
Financial Services Ltd., a noted Non-Banking Financial Company which shall
enable it to retire the existing debt held with two Asset Reconstruction
Companies (ARCs) and fortifying the company's financial position.
Under the
terms of the agreement, Jai Balaji Industries Ltd. will utilize the borrowed funds
to retire existing debt obligations held by two Asset Reconstruction Companies,
streamlining its financial structure and paving the way for rapid and sustainable
growth. The collaboration with Tata Group NBFC marks a pivotal step in the
company's financial strategy, emphasizing prudent financial management and a commitment
to long-term stability and growth.
Chairman
& Managing Director of Jai Balaji Industries Ltd, Mr Aditya Jajodia said: “We
are pleased to announce this strategic debt agreement with Tata Capital
Financial Services Ltd. This partnership signifies our commitment to fortifying
our business and enhancing our operational capabilities. By retiring the existing
debt held by Asset Reconstruction Companies, we are taking a proactive approach
to strengthen our financial position, setting the stage for sustained growth
and success."
With the
exit of the ARCs, the deal signifies the end of the period of financial
reconstruction and consolidation for the company. This will endeavour further
to enhance our capabilities for future investments and expansion. This debt
agreement also signifies a key milestone in the turnaround story of Jai Balaji
Industries Ltd.
Over the
last few quarters Jai Balaji Industries Limited has shown a huge improvement in
profitability and margins, achieved through a relentless focus on operating
efficiencies. The debt agreement now allows the company to move ahead with its
expansion plans for its Ductile iron Pipes and Special Grade Ferro Alloys and
debottlenecking of its facilities and various cost cutting measures to optimise
value addition.
The Jai
Balaji Industries stock has been included in MSCI India Domestic Small Cap
Index from 30th November 2023.
Mr Jajodia
added: "This debt agreement is a game changer for Jai Balaji Industries
and marks the beginning of a new chapter in our turnaround journey.”