Jayaswal Neco Industries Completes ₹2,300 Crore Refinancing

Jayaswal Neco Industries Limited has successfully completed a substantial ₹2,300 crore refinancing package, bolstering its financial stability. The complex transaction, advised by Shardul Amarchand Mangaldas & Co, involved a consortium of Non-Convertible Debenture (NCD) investors and a key working capital lender. This move signifies a critical step in the company's ongoing debt resolution strategy.

Deal Structure

The refinancing comprises ₹1,800 crore from the subscription of unlisted, secured, non-convertible debentures by a group of NCD investors. This debt issuance targets a reduction in interest costs and an improvement in credit metrics. Concurrently, Kotak Mahindra Bank Limited provided ₹500 crore in crucial working capital facilities to ensure operational continuity and growth.

The NCD investors involved include prominent financial institutions such as Tata Capital Limited, Investec, DSP Finance Private Limited, Nippon India Credit Opportunities AIF, Piramal Finance Limited, Vivriti Funds, Hero FinCorp Limited, Oxyzo Financial Services Limited, Kotak Mutual Fund, and Arka Fincap. This diverse group underscores the market's confidence in the restructured entity.

Significance of the Transaction

This refinancing marks the second such major deal for Jayaswal Neco Industries since its debt restructuring. The company has reportedly achieved significant reductions in interest rates and seen an improvement in its credit rating. Crucially, it has re-entered the banking system, signaling a recovery trajectory. The successful execution of this deal demonstrates the viability of resolving corporate debt outside formal insolvency processes when promoters cooperate and financial institutions find viable structures.