The Jindal Steel and Power Limited board has approved potential fundraising including by way of issuance of non-convertible, senior, unsecured, fixed or LIBOR rate notes worth $1 billion, the company said in a statement to the stock exchanges.
The fundraising is part of Naveen Jindal-led JSPL's bigger plan to go net debt-free in the short term and increase capacity to 15.9 metric tonnes (MT) by FY24 and beyond from the current 8.6 MT. The company in May this year had also said it was in the process of drastically cutting down its debt while going for a new capital expenditure cycle.
JSPL's consolidated net debt declined to Rs 15,227 crore in Q1FY22 from Rs 22,146 crore in March 2021. The company's net debt was also reduced by 32% from FY20 to FY21 and has narrowed to 64% on a consolidated basis since FY18. JSPL had made a prepayment of Rs 2,462 crore to its term lenders in addition to the loan repayments of Rs 20,000 crore in the last three years until December 2020.
Jindal Steel and Power's consolidated net profit jumped over 10 times to Rs 2,516 crore during the April-June 2021 quarter. Its total income in April-June 2021 also jumped to Rs 10,643.17 crore, from Rs 6,519.27 crore in the year-ago period. Part of the OP Jindal Group, JSPL is an industrial powerhouse with a dominant presence in steel, power, mining and infrastructure sectors.
The JSPL stock closed at Rs 379.30, up Rs 7.80 or 2.10 per cent, as compared to its previous close of Rs 371.5 on the NSE.
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