This Article is From Aug 25, 2015

JSPL to Raise up to Rs 15,000 Cr via Securities

New Delhi: Jindal Steel and Power Ltd (JSPL) will seek approval of its shareholders for raising up to Rs 15,000 crore via securities for loan refinancing and capital expenditure.

The Naveen Jindal-led firm is also evaluating various options including selling stake in its overseas subsidiaries.

JSPL said in a filing to the BSE that its board has been authorized to "offer or invite subscription for non-convertible debentures, in one or more series/tranches, aggregating up to Rs 10,000 crore on private placement" basis.

It also said that in order to "augment long-term resources for financing, the ongoing capital expenditure and for general corporate purposes, the Board may, at an appropriate time, offer or invite subscription for secured/ unsecured redeemable non-convertible debentures (NCDs) in one or more series/tranches on private placement, issuable/redeemable at par".

JSPL in the filing further said that it needs funds for meeting capital expenditure and operational expenditure requirements with adequate mix of debt and equity.

"It is therefore proposed to have enabling approvals to raise funds through issue of adequate securities in Indian and/or international markets by way of Further Public Offering (FPO) and/or Qualified Institutional Placement (QIP) to Qualified Institutional Buyers (QIBs) and/or other persons for an amount not exceeding Rs 5,000 crore...," it added.

The firm will put these proposals before the shareholders at its annual general meeting scheduled next month.

Meanwhile, in a separate filing, the firm responded to a regulatory clarification about its plans to offload a part of its stake in its foreign subsidiaries, saying, "We are in the process of evaluating various options and when at the time of confirmed decision making, we will intimate the same."

Earlier this month, JSPL had while presenting results for the June quarter said: "Company is also in the midst of taking concrete steps to reduce its working capital and strengthen its financial by exploring various avenues to reduce its debt."

"Sale of non-core assets and listing of subsidiaries are few of options which the company is vigorously pursuing to reduce debt in 2015-16."

The firm's overseas businesses expands to Africa, Oman (Middle East), Australia and Indonesia.

Shares in JSPL, on Tuesday, ended over 2.15 per cent higher at Rs 68.95 apiece on the BSE.