Jayaswal Neco Industries Limited has achieved financial closure for its proposed 1.50 million tonnes per annum (MnTPA) Straight-Grate Pellet Plant. The company received approval from all existing lenders for the ₹720 crore project, marking a significant step in its capacity expansion plans.

This development follows an earlier intimation dated April 25, 2026, regarding the setup of the new facility at the Integrated Steel Plant Complex in Siltara, Raipur. The expansion aims to utilize iron ore from captive mines and enhance operational efficiency.

Project details and financing structure

The new plant will operate alongside the existing 1.5 MnTPA pellet plant, which currently runs at approximately 90% capacity utilization. The total appraised project cost is ₹720.00 crore, financed through a mix of debt and internal accruals.

The construction period is estimated at 24 months, commencing from the date of the first drawdown of term debt, which has not yet materialized.

What the numbers show

The financing structure reveals a leverage ratio of 75% debt to 25% equity and internal accruals. With ₹540.00 crore in sanctioned term debt against a total cost of ₹720.00 crore, the company relies heavily on external funding. This high debt component suggests significant interest obligations once the drawdown begins, impacting future profitability metrics unless offset by the projected revenue from doubled pellet production capacity.

Jayaswal Neco Industries Limited has approved the allotment of 2,24,39,134 warrants to Vibrant Enterprises, a partnership firm, at a price of ₹89.13 per warrant. This preferential issue on a private placement basis aggregates to ₹200 crore, marking a significant capital infusion for the company.

The allotment was approved by the Committee of Directors during its meeting held on October 1, 2026. This action follows the Board’s earlier approval on April 24, 2026, to create and offer these subscription warrants. The transaction complies with the Companies Act, 2013, and Chapter V of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018.

Warrant Structure and Payment Terms

Each subscription warrant carries the right to subscribe to one equity share with a face value of ₹10. The investor may exercise these rights in one or more tranches within 18 months from the date of allotment. As of the allotment date, Vibrant Enterprises has paid ₹50 crore, which constitutes 25% of the total subscription amount. The remaining balance is payable at the time of exercising the warrants.

Investor Profile and Regulatory Compliance

Vibrant Enterprises is a partnership firm comprising partners Smt. Nisha Jayaswal, Smt. Rita Jayaswal, Smt. Karishma Jayaswal, Smt. Hargunn Jayaswal, Smt. Ankita Jayaswal, Jyotikant Investments Private Limited, and Vibrant Electronics Private Limited. The company confirmed that all applicable regulatory and statutory approvals were received prior to the final allotment decision.

The Committee meeting commenced at 10:30 am and concluded at 11:10 am. The disclosure was made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015.