Jain Irrigation in talks with credit fund Alpha to raise Rs 200 crore
Jain Irrigation Systems, a micro irrigation systems company, is in advanced talks with private credit fund Alpha Alternatives to raise ₹200 crore to repay inter-company deposits. The money is expected to be raised at over 20% interest rate.
The company's combined net debt is ₹3,600 crore as of March 31, 2023, and it is looking to pare down debt to ₹3,000 crore by the end of FY24.
«Jain Irrigation is in talks with private credit fund Alpha Alternatives to raise money to repay some existing debt including inter-company deposits, and the loan will be sanctioned within a few days,» said a source close to the development.
Private credit funds are looking at high yield returns of 21-24% in special situations and looking to invest in companies encountering difficulties in servicing debt.
Spokespersons of both Jain Irrigation and Alpha Alternatives did not respond to requests for comment. In March 2022, lenders approved restructuring of ₹3,878 crore debt through an out-of-court process, with 40% of the debt converted into long-term NCDs at an interest rate of 0.01%.
