JSW Energy, JSW Steel to seek approvals for fundraising

JSW Energy will seek shareholders’ approvals to raise up to `5,000 crore through various modes, which would be used to fund working capital needs and long-term capital requirements, among others.

For Q1FY23E, management expects coking coal cost to rise by $125/t.

JSW Energy and JSW Steel, which together contribute more than 85% to the revenue of Sajjan Jindal-led JSW Group, are seeking approvals to raise funds through various modes, including issuance of shares.

JSW Energy will seek shareholders’ approvals to raise up to Rs 5,000 crore through various modes, which would be used to fund working capital needs and long-term capital requirements, among others.

The company will seek the permissions at its annual general meeting slated to be held on June 14. The fundraising would be through issuance of equity shares, bonds and other securities, according to JSW Energy’s annual general meeting notice.

The company intends to use the funds raised as capital expenditure, for long-term capital requirements, repayment of debt, and other general corporate purposes. It will also invest in joint ventures and affiliates, JSW Energy said.

In August 2021, the company had received shareholders’ approval to raise Rs 5,000 crore, with a year’s validity. It had raised the funds through various modes.

Separately, JSW Steel is also seeking board approvals to raise funds. The company’s board, at its meeting slated on Friday, will consider raising long-term funds through qualified institutional placement (QIP) and permissible securities “as and may be required”.

However, the company did not disclose the quantum of funds it intends to raise, for which it is seeking board approvals.

Shares of JSW Energy closed down 5.16% at `294.05, while those of JSW Steel ended down 8.05% at Rs 539.55 on the BSE, which closed down 0.43% on Tuesday.

Get live Share Market updates and latest India News and business news on Financial Express. Download Financial Express App for latest business news.

Most Read In Industry
Photos