Business Growth Funding
Company required immediate expansion capital to upgrade key automated machinery and secure raw supply lines.
We structured a hybrid debt-equity fundraising round utilizing strategic corporate private placements and bank credit lines.
Successful business expansion, increasing processing throughput by 42% within six months of capitalization.
Understanding the situation
The manufacturing group had reached capacity limits on their existing production lines, losing orders to competitors with faster turnaround times.
Traditional bank financing alone could not cover the full capital requirement, and the promoters wanted to avoid excessive equity dilution.
The timeline was tight — machinery orders had to be placed within 90 days to secure favorable pricing from OEM suppliers.
How we solved it
We conducted a thorough financial assessment to determine the optimal debt-equity mix that would minimize cost of capital while preserving promoter control.
For the debt component, we sourced competitive term loan offers from 4 banks and negotiated a blended rate 80bps below the initial quotes.
For the equity component, we identified a strategic investor with deep manufacturing sector expertise who could add operational value beyond just capital.
We prepared a comprehensive project report with IRR projections, capacity utilization models, and risk mitigation strategies that satisfied all lender requirements.
Measurable outcomes
₹35Cr total capital raised — ₹22Cr in structured debt and ₹13Cr in strategic equity
Processing throughput increased 42% within 6 months of new machinery installation
3 new product lines launched, diversifying revenue across additional market segments
The company's credit rating was upgraded by one notch post-expansion
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