Jai Balaji in news
Jai Balaji Industries is back from the brink of bankruptcy. De-allocation of coal blocks, rising raw material prices, low capacity utilization, a very heavily leveraged balance sheet to fund an ambitious expansion project led to the banks selling its debt of Rs.3000 crore to Edelweiss ARC and Omkara.
Edelweiss ARC converted the 40% debt it bought into equity and currently holds 12.42% stake in the company.
The company’s latest – it has made settlement with Corporation Bank (Now Union Bank of India) and paid off its dues and received a settlement certificate from the Bank on June 20.
This news has got a big thumbs up from the market as it indicates that the company is slowly but surely getting back on its feet.
The stock price, which had closed yesterday at Rs.39.95, opened today at Rs.47.50, just a tad away from its 20% UC of the day at Rs.47.90; it has given up the big gains of the morning and is now trading at Rs.40, just about holding on to the green.