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Jindal Steel share hits 52-week high as firm to sell stake in Jindal Power for Rs 3,015 crore

Jindal Steel share hits 52-week high as firm to sell stake in Jindal Power for Rs 3,015 crore

JSPL stock touched an intraday high of Rs 455.95, rising 3.09% on BSE.

Jindal Steel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages. Jindal Steel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

Share of Jindal Steel and Power Ltd (JSPL) rose to its fresh 52 week high today after the firm said it would sell 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. The stock has gained 2.56% in the last 2 days. It touched an intraday high of Rs 455.95, rising 3.09% on BSE. Jindal Steel share is trading higher than 5 day, 20 day, 50 day, 100 day and 200 day moving averages.

The stock has gained 447% in one year and risen 69%  since the beginning of this year. Market cap of the firm rose to Rs 45,921 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 to sell stake in Jindal Power to Worldone for Rs 3,015 crore

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.