Jain Irrigation Systems (JIS) on Thursday said it is planning to raise around Rs 200 crore through preferential allotment of equity share warrants.
The price for the 1,63,21,607 equity share warrants — to be worked out under a certificate of the statutory auditor — is likely to be about Rs 46.64 per equity share, the company said in a regulatory filing. The funds raised by way of promoter allotment would be about Rs 76.12 crore. Similarly, to meet its various obligations, an Alternative Investment Fund (AIF) named Alpha Alternatives Structured Credit Opportunities Fund — a special purpose vehicle of Alpha Alternatives Holdings and its associates — will subscribe to 2,64,64,823 equity share warrants at an aggregate of Rs 123.43 crore, the filing said.
Both warrants shall be converted into equity shares in 18 months, it said. The company has also proposed to raise debt through its subsidiary Jain Farm Fresh Foods (JFFFL) by issuing non-convertible debentures worth Rs 145 crore and redeemable preference shares, or optionally convertible preference shares, amounting to Rs 20 crore. JIS has also issued corporate guarantees for some of the loans of its non-banking financial company Sustainable Agro-Commercial Finance Ltd (SAFL), it said.
“After these corporate actions, we expect SAFL to become debt free and no additional funding or support will be required from the parent company,” JIS said. The fund raise has been principally approved and is subject to due-diligence, documentation and necessary approvals from lenders, the company added. “The strategic financial bolstering almost eliminates any risk of financial or cross-default by the relevant entities,” JIS chief executive officer Anil Jain said.
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