IFC, Ballarpur sign agreement for $100 million equity investment
IFC will hold a stake of 14.29% in Ballarpur's step down subsidiary Bilt Paper after the transaction is completed
Mumbai: Ballarpur Industries Ltd’s step down subsidiary Bilt Paper BV has entered into a definitive agreement with International Finance Corp. (IFC) for the sale of new shares worth $100 million, Ballarpur said in a filing to BSE on Monday.
A step down subsidiary means subsidiary company of a company that is subsidiary of another company.
IFC will hold a stake of 14.29% in Bilt Paper after the transaction is completed. The deal values Bilt Paper at $600 million.
On 27 June, Ballarpur had told stock exchanges that Bilt Paper was evaluating and exploring options for receiving equity and/or debt investment from IFC. Subsequently, on 3 September, the firm announced that IFC board had approved equity investment of up to $100 million and long-term loans of as much as $150 million.
Bilt Paper is also looking at listing its shares at an overseas stock exchange, the company said in the filing.
IFC has invested $900 million in India so far this year across 18 deals. The investments have already exceeded the $820 million committed in 2013.
“As an active investor in India, IFC evaluates all key opportunities in line with our strategy. Investments are a function of finding the right opportunities, and where IFC can play an important development role with appropriate impact and financial returns. We have been and continue to be long-term investors in India," said Nupur Garg, regional lead, private equity funds, IFC.
India is the biggest investment destination for IFC. Its India portfolio stood at $4.5 billion at the end of 30 June 2013, according to the IFC website.
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