Liquidity Events
Tata Capital anchors Rs 2,300-Cr refinancing of Jayaswal Neco debt; provides exit to Edelweiss Alter
Tata Capital has led an INR 2,300-crore refinancing of Nagpur-headquartered steelmaker Jayaswal Neco Industries ' debt, providing an exit to Edelweiss Alternatives. The refinancing was anchored by Tata Capital with a commitment of about INR 800 crore, alongside Investec at INR 300 crore.Other lenders and investors in the syndicate include Vivriti Capital (INR 200 crore), Hero FinCorp (INR 300 crore), Hero Corp, DSP (INR 175 crore) and Oxyzo. Smaller family offices have chipped in roughly INR 75 crore. The entire syndicate has come in at a return of around 12.5%.The refinancing replaces an earlier structure in which Edelweiss Alternatives was the primary lender to the asset. Edelweiss is said to have earned a return of about 19% over the life of its investment, which was refinanced within two to three years.Jayaswal Neco had faced financial stress between FY14 and FY18 and was referred to the NCLT in 2018 by a bank consortium led by the State Bank of India, though it avoided insolvency proceedings. The lenders later sold the loans to ACRE-managed trusts, leading to a restructuring that became effective in May 2022. Jayaswal Neco exited the restructuring by refinancing the debt through non-convertible debentures in December 2023.
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