SOURCE: India Globalization Capital, Inc.

India Globalization Capital, Inc.

October 22, 2009 08:10 ET

India Globalization Capital Raises $2 Million in Debt Financing

Company Raises Almost $6 Million in Past Month

BETHESDA, MD--(Marketwire - October 22, 2009) - India Globalization Capital (NYSE Amex: IGC), a company developing infrastructure in India, today announced that it raised $2 million in one-year debt financing with zero percent interest in exchange for a promissory note and 530,000 shares of unregistered common stock.

Ram Mukunda, CEO, stated: "The trends in the emerging markets and global commodities are highly favorable today. We are moving quickly to capitalize on these trends, by moving to high growth and high margin sectors. The demand for ore from our customers in China is growing rapidly. Over the past month, we have raised about $6 million in new capital in a combination of debt and equity financing. We will use this capital to demonstrate the revenue growth potential and earnings power we believe we have in our business units in India. We are deploying the capital to fill existing orders, accelerate contracts, and increase production and quality in our India-based construction, aggregate and iron ore businesses. The momentum being created will be evident in the quarter just ended and will extend over the balance of this fiscal year and into fiscal year 2011."

India Globalization Capital will report results for the second quarter of fiscal 2010 and hold a conference call to discuss these results in early November 2009.

About India Globalization Capital

India Globalization Capital is a construction and materials company operating in India. IGC builds roads, bridges and highways, and provides materials to the infrastructure industry in India and China. IGC has offices in Maryland, Mauritius, Nagpur, Cochin, Delhi, and Bangalore. Copies of the Form S-3 and India Globalization Capital's other filings with the SEC containing information about India Globalization Capital, our Indian operations, and other relevant documents, are available at no charge on the SEC's website (http://www.sec.gov).

For more information about India Globalization Capital, visit the company's web site at: www.indiaglobalcap.com.

Forward-Looking Statements:

This press release may contain forward-looking statements. These statements reflect management's current views and are subject to risks and uncertainties that could cause actual results to differ materially from those projected, expressed or implied in these statements. Factors, which could cause actual results to differ, relate to: (i) the ability of the parties to successfully execute on the contracts and business plan, (ii) our ability to raise additional capital and the structure of such capital including the exercise of warrants, and (iii) changes in the exchange rate between the U.S. Dollar and the Indian Rupee. We undertake no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise. Other factors and risks that could cause or contribute to actual results differing materially from such forward looking statements have been discussed in greater detail in the company's definitive proxy statement and supplement filed with the SEC and incorporated by reference into the Form S-3.

Contact Information