World Bank's private lending arm International Finance Corporation (IFC) will invest up to Rs 131 crore for a project of agrochemicals manufacturer Meghmani Organics.
The strategic investment would be for the caustic chlorine complex in Dahej, Gujarat, being developed by Meghmani Finechem Ltd (MFL), a subsidiary of Meghmani Organics. The project is proposed to involve a total cost of Rs 554.5 crore.
IFC would buy a 25 per cent stake in the project by investing up to Rs 46.1 crore, Meghamani said in a filing to the Bombay Stock Exchange.
Besides, IFC would provide Rs 80 crore as a long-term loan and would also have the right to subscribe warrants up to Rs five crore.
“This IFC investment is a vote of confidence in the potential and viability of this project. They are uniquely positioned also to help us develop environmental, health, social and safety management systems and practices at the new plant,” said Meghmani Finechem's Director Ashish Soparkar.
He further added, “MOL sees the investment in this project as an opportunity for the Group to achieve inorganic growth in a diversified, yet chemistry-related business with positive growth potential.” The plant would be located in Dahej, Gujarat. The commercial production of the first phase is targeted to commence by December 2008 or January 2009.
Source: Trading Markets