Jindal Steel and Power (JSPL) said on Friday that it has raised Rs 1,200 crore through qualified institutional placement (QIP).
Jindal Steel and Power (JSPL) said on Friday that it has raised Rs 1,200 crore through qualified institutional placement (QIP). The shares were issued at Rs 233 per scrip, which was Rs 5.85 above the floor price supported the by interest from long-term investors. The company plans to use the fresh funds for working capital requirements, operational and capital expenditure and repayment of long-term loans. The consolidated debt of the company is estimated to be about Rs 45,300 crore. The company is lowering its net losses on the back of global rise in base-metal prices coinciding with higher production at its steel plants. In Q3FY18, JSPL recorded losses of Rs 277 crore, down from Rs 455 crore a year ago.
Company’s chairman Naveen Jindal recently told FE that JSPL has restructured its $550 million of foreign currency denominated debt and designed a debt reduction road map to become a relatively debt-free company by 2020. In line with that agenda, JSPL sold its oxygen plant assets at its Raigarh steel plant in October 2017. It recently ramped up infrastructure investments at its plant in Angul in Odisha, where it recently completed a 3 mtpa basic oxygen furnace at the integrated steel plant, raising domestic steelmaking capacities to 8.6 mtpa. JSPL’s power generation capacity stands at 3,400 MW.