It is reported that Kolkata based Jai Balaji Industries has raised INR 198.50 crore through a qualified institutional placement issue.

As per report this is the second round of placement, the first being in February 2008 when the company raised close to INR 273 crore from Citi Venture Capital International and India Equity Partners through private placement of shares.

The investors in this QIP issue are Halbis, GMO, Reliance AMC, New Vernon, JF Investors, UBS GAM, Hammon, IIFL Emerging India Focus Fund Singapore, Kotak AMC and United Bank of India.

Mr Aditya Jajodia MD of Jai Balaji said that this round of placement of equity shares increased the stake of FII/FDI/FI holding to close to 30% in the company. He added that the funds would be used for completion of its ductile iron pipe plant and coke oven plant at Durgapur in West Bengal and mines allocated to the company.

The company is also in the process of starting its Purulia plant. Mr Jajodia said that the company had in possession 1,100 acres for its first phase. It had also bagged coal linkages for the project. The total land requirement for the project was 3,600 acres which would be used for a five million steel plant three million tonne cement plant and 1,215 MW of captive power.

(Sourced from Business Standards)