Jai Balaji Industries Secures Rs 559 Crore Debt Agreement with Tata Capital to Clear Legacy NPAs

18 Dec 2023 , 03:17 PM

Jai Balaji Industries signed a Rs 559-crore debt agreement with Tata Capital Financial Services to retire remaining legacy non-performing assets (NPAs) held by two asset reconstruction companies.

In 2018-19, the company had outstanding NPAs of about Rs 3,000 crore, which were later sold to two ARCs by banks.

The agreement with Tata Capital clears the legacy NPA book held by the ARCs, leaving the current debt at Rs 559 crore secured from Tata Capital. Chairman & Managing Director Aditya Jajodia stated that with the positive turnaround and strong cash flow, the company aims to be debt-free within the next 12 months.

Retiring the debt held by the ARCs reflects the company’s proactive approach to strengthening its financial position for sustained growth and success.

The agreement with Tata Capital has a three-year term, but the company intends to repay the loan within the next 12 months.

In H1, the company reported an EBITDA of Rs 450 crore on a revenue of approximately Rs 3,000 crore.The new debt structure positions Jai Balaji Industries for expansion plans in ductile iron pipes and special grade ferro alloys.

The company also plans to implement debottlenecking of facilities and introduce cost-cutting measures for further value addition optimization.

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