Mumbai: International Finance Corporation (IFC), the private equity arm of World Bank, has picked up 11.48% stake in Granules India for around Rs26 crore.
“This would be the last round of major equity dilution for the company in the foreseeable future and marks the completion of the current fund raising exercise that Granules announced in December,” Granules India managing director Krishna Prasad said in a communique to the BSE.
IFC is also considering a long-term loan assistance of $9 million (Rs36 crore) to the company. “We are looking forward to this investment of debt or equity, which will strengthen the balance sheet of the company and gear us for delivering the high growth. This reiterates the strength of Granules and will boost the internal systems to meet high-growth phase we are getting into,” Prasad added.
The board of directors of the company passed a resolution on 8 May entailing the issue of up to 22 lakh shares to IFC at Rs118.10 each, subject to shareholders’ approval.
As per the information available on IFC website, the private equity arm of the World Bank proposes to invest $15 million out of the estimated project cost of $32 million.
The key sites for the said project are Bonthapally and Gaigillapur in Hyderabad. For the quarter ended 31 March, Foreign Institutional Investors (FIIs) like Goldman Sachs Investments (Mauritius) Ltd and Morgan Stanley and Company International Ltd hold 5.29% and 4.84% stake respectively in Granules India, the data available on BSE showed.