Panyam is a Cement company and Eight Capital’s deal size here is US$4 Million + US$7 Million.

At the time of investment, the cement plant was shut down and had INR 1.28Billion in defaulted loans, but had 20 Acres of prime land in Bangalore. Eight Capital paid the loans off at 28% of face value and sold the real estate to a reputable property developer in Bangalore.

With the real estate cash flows, our secured loans were paid back to us and we were left with approximately 10% of the outstanding equity in the company. The management of the company restarted the cement plant and started shipments nearly a year back. We had created our position in the cement plant at $25/tonne capacity. Now this has increased nearly tenfold.

Other strategic benefits from this deal are:

• Turnaround cement producer. Helped company double capacity.
• Buy out bid from a strategic player, providing substantial returns .