Polestar advises on US$ 1.0 bn Private Financing for one of the largest Commodity Companies

Polestar acted as an Advisor to an offshore Indian Conglomerate (“Group”) to raise Private Finance from a large Global Special Situation Fund (“Investor”) against their listed metal and mining company (“Company”).

Few highlights:

  • Situation - The Group wanted to raise its holding in a highly profitable listed Company as there were dividend leakages. The stock price was fairly low as compared to the intrinsic value of the listed business due to Covid/market condition, thereby providing a window to the Group to increase its holding through creeping acquisition.
  • We first identified pocket where there was value at the Group's multiple intermediary holding company level and assisted the Group raise one of the largest offshore private financing at one of their holding companies by creating a lock-box structure thereby providing adequate comfort to the Investor over security created.
  • The Group utilised the borrowing proceed to fund creeping acquisition, thereby increasing its stake in the Company.
  • Post financing the stock rallied by 5x over a short period of 12 months thereby creating immense value to the Group through this financing.