Jindal Steel and Power (JSPL) shares surged nearly 7 per cent in the early trade on Thursday after a Financial Express report that lenders to the company are are likely to refinance project loans to the steel maker’s loss-making subsidiaries Wollongong Coal mine (Australia) and Angul steel plant.
At 9.53 am, shares of JSPL were trading 6.22 per cent up at Rs 60.60. The scrip opened at Rs 58.10 and has touched a high and low of Rs 61 and Rs 58.10, respectively, in trade so far.
However, the scrip closed 0.09 per cent down at Rs 57.
Crisil Ratings downgraded JSPL to below investment grade after the firm reported a consolidated net loss of Rs 573 crore for the three months to December.
According to the report, lenders have already approved a refinancing for Jindal Power’s (JPL) loans of Rs 3,319 crore as per the 5/25 guidelines. Further, they are looking to reschedule repayments for two JSPL’s subsidiaries. In doing so banks must ensure the net present value of the asset is protected.
JSPL, promoted by Naveen Jindal, owns an 82.04% stake in Wollongong Coal that runs two underground coking coal mines with estimated reserves of 125 million tonnes (mt) and 652 mt under Joint Ore Reserves Committee classifications.