Jindal Steel and Power Ltd (JSPL) on Tuesday said it will sell its entire 96.42 per cent stake in Jindal Power Ltd (JPL), a material subsidiary of the company, to Worldone Private Ltd for Rs 3,015 crore.
JSPL, in a release, said it has accepted a binding offer from Worldone to sell its stake in Jindal Power. "The equity value is an all-cash offer of Rs 3,015 crore for a 96.42 per cent stake in JPL including 3,400 MW coal-fired power plants in the state of Chhattisgarh and other non-core assets owned by JPL," the company said.
The divestment is subject to receipt of requisite approvals, including approval from shareholders of JSPL, approval from lenders of JPL and JSPL, and other statutory approvals, consents, permissions, and sanctions as may be necessary in line with the extant relevant guidelines.
JSPL said the divestment is in line with its strategic objective to continuously reduce debt, focus on its India steel business and significantly reduce its carbon footprint by almost half as part of its ESG objectives.
"This divestment is in line with our ESG objectives to be amongst the top 10 lowest CO2 emitting steel companies of the world. It is yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders," JSPL MD V R Sharma said.
JSPL will be a key growth driver in the Indian steel industry and will now focus on undertaking an expansion of its Angul steel plant from 6 MTPA to 12 MTPA. Infrastructure spending in India is bound to grow exponentially and JSPL is fully aligned with the government's vision of achieving 300 MTPA steel production by 2030, he added.
Shares of JSPL were trading 1.45 per cent higher at Rs 448.70 on the BSE on Tuesday.