Diamond Cables announced today that Clearwater Capital Partners to Invest Rs 160 Crores and GE Capital to Invest Rs 68 Crores in the Company.

The Company is expanding manufacturing base and adding a HT Power Cables and LT Cables facility at Vadodara at an estimated cost of Rs 68 Crores, the said facility shall be in Operation in January 2008 and June 2008 respectively, in order to Finance the project and raise long term working capital for the same, the Board of Directors of the Company has In Principle approved to accept a loan of Rs 68 Cr from GE Capital. The Said loan shall be for Tenure of 5 years with a Moratorium of 1 year. On completion of this Project the Company shall be amongst the Top three Power cables Manufacturer in the country.

The Company had raised Rs 68 Crs as long Term Debentures and Rs 60 cr as Short Term loan from Clearwater Capital Partners India Ltd, the board has approved Pre-Payment of the Entire NCD and Short Term loan.

Looking at the bright prospects of the Company and its growth plans the Company requires long term working capital funds, which will enable its big ticket entry in Turnkey T&D Projects. The Board has approved a Loan of Rs 160 crores from Clearwater Capital Partners Lid, out of which Tranche A of the loan Comprising Rs 90 crores shall be repaid in One Year and Tranche B of the Loan comprising of Rs 70 cr will be repaid in 5 years time.

This debt aggregating Rs 228 crores which is now raised from Clearwater Capital Partner and GE Capital will greatly enhance the Companies Working Capital and result in maximum usage of Assets and resource resulting in large scale increase in the Top line of the Company.”