Diamond Cables to raise Rs 228 crore

MUMBAI: Wire products manufacturer Diamond Cables on Tuesday said it will raise Rs 228 crore through New York-based private equity firms Clearwater Capital Partner and GE Capital.

Clearwater Capital would invest Rs 160 crore while GE Capital would put in Rs 68 crore in the company.

The debt will be utilised for maximum usage of assets which in turn would lead to an increase in the company's top line, Diamond Cables said in a filing to the Bombay Stock Exchange. Out of the Rs 160 crore loan from Clearwater Capital, Rs 90 crore would be repaid in one year and Rs 70 crore would be repaid in five years' time.

Diamond Cables is expanding manufacturing base and adding new facilities at Vadodara. In order to finance the project and raise long-term working capital for the same, the board of directors has accepted a loan of Rs 68 crore from GE Capital.

Shares of Diamond Cables hit its upper circuit limit and were trading at Rs 374, up 10 per cent, at BSE in the afternoon trade.