JSPL gets board approval to raise $1 bn

By: |
August 31, 2021 3:00 AM

The company would do so by issuing bonds in one or more tranches to domestic or global investors, it said in a regulatory filing.

JSPL would use the funds for its expansion plans and reduction of debt, it had said in analyst presentation earlier this month.JSPL would use the funds for its expansion plans and reduction of debt, it had said in analyst presentation earlier this month.

Industrialist Naveen Jindal-led Jindal Steel & Power’s (JSPL’s) board on Monday approved a proposal to raise funds of up to $1 billion (about Rs 7,347 crore).

The company would do so by issuing bonds in one or more tranches to domestic or global investors, it said in a regulatory filing.

JSPL would use the funds for its expansion plans and reduction of debt, it had said in analyst presentation earlier this month.

JSPL also said it intended to invest more than $2.4 billion in over six years to ramp up capacity.

The company plans to raise total crude steel capacity to 15.9 million tonne by March 2025 from 8.6 million tonne as of FY21-end. The capacity expansion would be at the company’s Angul facility in Odisha.

Further, the New Delhi-based firm would also more-than-double its pellet production capacity to 21 million tonne by 2024. It would expand its production capacity, again at Angul, from the 9 million tonne as of FY21.

JSPL is in the process of setting up a 2.25-million tonne plant in Nellore district of Andhra Pradesh to produce hot-rolled coil. The firm would mainly target export markets for HRC, as the plant is situated close to the Krishnapatnam port.

JSPL is mulling a foray into container-making from its Angul facility, starting with a manufacturing capacity of 15,000 containers per year.

The company expects its total production from all its plants to rise to 50 million tonne by 2025 from the present 9 million tonne, MD VR Sharma had said earlier.

NET-DEBT FREE

JSPL intends to become a net-debt free firm by 2023 from about Rs 13,000 crore as of FY21. The firm would reduce net debt by about Rs 4,000 crore by the end of the calendar year, repaying mainly from internal accruals.

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