Tata Capital anchors Rs 2,300-crore refinancing of Jayaswal Neco debt

Core Insights - Tata Capital has led a ₹2,300 crore refinancing of Jayaswal Neco Industries' debt, providing an exit to Edelweiss Alternatives [9] - The refinancing includes commitments from various lenders, with Tata Capital contributing ₹800 crore and Investec ₹300 crore [9] - The refinancing replaces an earlier structure where Edelweiss Alternatives was the primary lender, achieving a total return of about 19% over its investment period [9] Financing Details - The total deal size for the refinancing is approximately ₹2,300 crore, with contributions from Vivriti Capital (₹200 crore), Hero FinCorp (₹300 crore), DSP (₹175 crore), and smaller family offices (₹75 crore) [9][2] - The entire syndicate is expected to yield a return of around 12.5% [2] - Tata Capital has earned a syndication fee from the deal size [2] Investment Performance - Edelweiss Alternatives' second performing credit fund, a $900 million fund, has executed 17 deals, with 13 already exited [4] - The fund has delivered returns exceeding 18%, prompting the company to raise an additional $1 billion in private credit [4][5] - The exit from Jayaswal Neco adds to the fund's track record, with remaining investments expected to exit in 12 to 18 months [4] Strategic Implications - The refinancing will lower borrowing costs and extend maturities for Jayaswal Neco, with promoters pledging their entire 55.2% stake as collateral [7] - Half of the pledged stake is expected to be released once 50% of the debt is repaid, enhancing balance-sheet flexibility [7] - Jayaswal Neco had previously faced financial stress and was referred to the NCLT in 2018, but avoided insolvency proceedings [8]