SAM advises on ₹2,300 crore refinancing of Jayaswal Neco Industries

Shardul Amarchand Mangaldas & Co has advised a consortium of NCD investors and a working capital lender on a twin financing of ₹2,300 crore to Jayaswal Neco Industries Limited.

The NCD investors include 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, and Kotak Mahindra Bank Limited is the working capital lender.

The transaction involved the subscription by the NCD Investors to unlisted, secured, non-convertible debentures aggregating ₹1,800 crore, with the balance existing indebtedness refinanced through internal accruals. In parallel, Kotak Mahindra Bank Limited extended ₹500 crore in working capital facilities.

The SAM team advising on the transaction was led by Veena Sivaramakrishnan (Partner, Co-Head Banking & Finance Practice) and Dhananjai Charan (Partner), with support from Yash Kahandole (Principal Associate), Sneha Rao (Senior Associate), Associates Disha Khandelwal and Karina Katrak.

The additional team supporting on Due Diligence included Aditya Malhotra (Partner), Mihir Deshmukh (Partner), Abhijeet (Principal Associate), Anuj Loya (Senior Associate), Associates Hrishikesh Gayakwad and Shamik Gupte.

This is the 2nd refinancing for Jayaswal Neco Industries post its restructuring of debt, with significant reduction in interest rates, improvement in credit rating and a re-entry into the banking system. The deal reflects that restructuring of debt outside of formal insolvency process and with the cooperation of existing promoters can indeed be successful.

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