Jain Irrigation Systems Ltd’s (JISL) food processing arm has raised Rs 402 crore from Mandala Capital for growth of the company. The company’s subsidiary Jain Farm Fresh Foods Ltd (JFFFL) today announced that it has successfully raised Rs 402.2 crore from funds managed by Mandala Capital Ltd, an investment manager focused exclusively on Indian agri-business. JFFFL is a newly-formed entity under which the global food processing business of JISL will now be held, the company said in a regulatory filing. “JFFFL made a preferential issue of equity shares and compulsorily convertible debentures (CCDs) to Mandala for a total subscription amount of Rs 4,022 million. 60 per cent of the investment is in equity and balance in CCDs,” it added. Upon conversion of CCDs, Mandala will own a total stake of either 14.27 per cent or 17.35 per cent in JFFFL, based on revenue parameters. JFFFL will use these proceeds to fund future growth under its capital investment programme. “This investment was part of a larger programme of fund raising by JISL under which JISL successfully raised total equity of USD 120 million from its promoters and Mandala,” the filing said. The funds would be used mainly to reduce debt and growth of food business. Jain Irrigation Systems has been building its food processing business since 1994 into a leading manufacturer of mango, banana, guava, strawberry and other fruit-based pulps, clarified juices and concentrates as well as dehydrated vegetables such as onion, garlic and ginger.
Source: Economic TimesJain Irrigation arm raises Rs 402 crore from Mandala Capital.
Industry: Agro based 2016-03-31
