JSW Steel, the country’s largest private steel producer, has got shareholders’ approval for raising about Rs 4,775 crore through qualified institutional placement route aimed at reducing company’s debt.
“We have got enabling resolution passed by our shareholders at our Annual General Meeting yesterday to raise USD 1 billion through QIP. It is aimed to reduce the company’s debt,” JSW Steel Vice-Chairman and MD Sajjan Jindal said.
The board of the company will decide on the “timing” and “quantum” of the issue, he said.
JSW Steel’s consolidated debt stands at Rs 14,500 crore.
Elaborating on the plan to reduce debt, JSW Steel Joint Managing Director and Group CFO Seshagiri Rao said that the company’s consolidated debt-equity ratio stands at 1.8:1, which it wants to bring down.
“The aim is to reduce the consolidated debt-equity ratio to 1.5:1,” Rao said.
The company will look to raise USD 1 billion within a year. The resolution is valid for one year, Rao said.