Exclusive financial advisor to the Lagnam Spintex Limited



June 2022




INR 1,630 MN

Deal Value

Exclusive financial advisor to the Lagnam Spintex Limited

Deal Highlights:

  • Augmented project finance for brownfield expansion of spinning capacities of the Company for installation of additional ~41,500 spindles for manufacturing of compact cotton yarn with total capital outlay of Rs. 2,180 Mn.
  • This proposed expansion would increase the Company’s capacity more than two-fold and would improve economy of scale
  • The facilities were arranged at competitive terms from the lenders with fine spread over banks’ 1 Year MCLR rates, optimal security covenants and capital mix

Nuvama Contribution

  • Facilitated induction of new lenders along with existing banker to secure best benchmark terms and conditions
  • Secured sanctions of almost 3 times of the funding requirement, which helped achieve optimal funding structure for the project
  • Prepared detailed Information Memorandum and satisfactorily addressed credit queries for lenders with suitable capital structuring
  • Played pivotal role in coordinating with the lenders and all external agencies and remained their first point of contact