Profit

JSPL, JSW Energy Shares Gain On Buzz Of Power Plant Deal

 Share
EMAIL
PRINT
COMMENTS
JSPL, JSW Energy Shares Gain On Buzz Of Power Plant Deal
JSPL (Jindal Steel & Power Limited) stocks were in focus today after a newspaper report said that JSW Energy was close to sealing a deal to buy JSPL's assets.

The Economic Times, citing sources, said Sajjan Jindal-led JSW Energy is set to acquire Jindal Power's 1,000 MW Raigarh (Chhattisgarh) plant for about Rs 6,000 crore. 

JSPL shares ended  2.6 per cent higher while JSW Energy shares rose 3.2 per cent. 

Jindal Power Ltd (JPL) is a subsidiary of JSPL, the steel-to-power flagship company of Sajjan Jindal's younger brother Naveen Jindal. 

Shares of JSPL have taken a beating on the bourses in the last couple of months amid concerns over the company's debt situation. Investors became jittery after rating agency Crisil downgraded JSPL's corporate debt. JSPL stocks have lost nearly one-third of their value in the past three months. 

High debt burden (consolidated debt of Rs 45,500 crore as of FY15-end) and a slump in steel prices have adversely impacted JSPL's financials. For October-December quarter, JSPL posted a consolidated net loss to Rs 573 crore. 

JSPL said that its financials have also been hit on account of cancellation of coal blocks and payment of additional levy on coal of over Rs 3,300 crore in the 2014-15 and 2015-16 financial years as a result of a Supreme Court order.

JSPL earlier this week said that its subsidiary Jindal Power has entered into an agreement to sell stake in India Energy Exchange at an undisclosed amount. It is also exploring various options with lenders to reschedule payments, the company said. (With Agency Inputs)

NDTV Beeps - your daily newsletter

................................ Advertisement ................................

................................ Advertisement ................................

................................ Advertisement ................................

Top