Business Growth Funding
The company needed capital fast to upgrade its automated machinery and lock in raw material supply.
We put together a hybrid debt-and-equity round using private placements and bank credit lines.
Processing throughput went up 42% within six months of funding.
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 hold the OEM pricing.
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 detailed project report with IRR projections, capacity utilization models, and risk mitigation that met every lender requirement.
Measurable outcomes
₹35Cr total capital raised: ₹22Cr in structured debt and ₹13Cr in 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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