Shareholders of Jai Balaji Industries on Wednesday cleared the merger of the steel division of HEG Ltd at Chhattisgarh with Jai Balaji and the purchase of a 100% stake in Nilachal Iron & Power Ltd in Jharkhand.
The HEG and Nilachal moves have given Jai Balaji a foothold in two mineral rich states of eastern India.
The steel division of HEG consists of a sponge iron plant, an SMS division and a power plant. Nilachal Iron & Power Ltd, a manufacturer of sponge irion, has its own power plant, coke oven and a pellet plant, apart from rolling mills, facilities to make tubes and pipes, and ferro alloys.
Jai Balaji recently signed a pact with the West Bengal government to set up a 5 million tonne steel plant, a cement plant and a 1215mw captive power plant near Purulia, involving a total investment of Rs 16,000 crore.
Jai Balaji said all these projects and acquisitions will put it in the ranks of the country’s leading steel producers.
Citi Venture Capital International and Hudson Equity Holdings Ltd, a part of India Equity Fund, have invested a total of Rs 273.25 crore in the company in one of the largest deals in private equity. The promoters and others have invested Rs 313.82 crore.
