Shardul Amarchand Mangaldas Advised On INR 2,300 Crore Refinancing Of Jayaswal Neco Industries Limited

Shardul Amarchand Mangaldas advised on INR 2,300 crore refinancing of Jayaswal Neco Industries Limited

The leading law firm in India, Shardul Amarchand Mangaldas & Co. (“SAM”) advised a consortium of NCD investors and a working capital lender on a twin financing of INR 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, and Arka Fincap, and Kotak Mahindra Bank Limited acted as the working capital lender. Vistra ITCL acted as the debenture trustee/security trustee in relation to the financings.

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

The facilities are secured by first-ranking pari passu charges over the borrower’s movable and immovable assets, supported by personal guarantees from the promoters, with the NCDs additionally secured by an exclusive pledge over identified promoter shareholding. The twin deals are significant as it is the second refinancing for JNIL post its restructuring of debt, with a significant reduction in interest rates, improvement in credit rating, and a re-entry into the banking system. The transaction highlights that debt restructuring outside of a formal insolvency process, with the cooperation of existing promoters, can be successfully executed.

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

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

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