Global private firm Kohlberg Kravis Roberts and Co. Lp (KKR) will invest about $150 million (around Rs.960 crore today) in JBF Industries Ltd, the Mumbai-based listed polyester maker, according to a report from The Financial Times. The deal is likely to be announced on Friday. The money from KKR will be used to complete a $600-million petrochemical plant in Mangalore, Karnataka, while the remaining portion will help repay JBF's $1.6-billion net debt, the report said.
KKR India officials could not be reached for comments. KKR will take a 20% stake in JBF, which could rise if the investment group takes advantage of a conversion mechanism in debt, added the FT report. Shares of JBF Industries were trading 3.7% higher at Rs.318 on the National Stock Exchange (NSE) ahead of Friday's board meeting to consider the fund-raising plan. In a filing to the BSE, JBF Industries said that a meeting of the company's board will be held on 31 July to seek the consent of directors for the issue of equity shares and/or warrants on a preferential allotment basis to investors. Established in 1982, JBF Industries was founded by Bhagirath Arya as a yarn texturizing company, and was involved with manufacturing partially-oriented yarn, polyester film and various types of bottle grade, film grade and textile grade polyester chips. JBF was listed n 1986. KKR, which specializes in leveraged buyouts globally, has been active in India through several buyout transactions.