scorecardresearch
JSPL stock rises 3% after firm prepays $357-million loan of Mauritius arm

JSPL stock rises 3% after firm prepays $357-million loan of Mauritius arm

Jindal Steel and Power stock rose 3.59% intraday to Rs 494 on BSE. Market cap of the firm climbed to Rs 50,035 crore.

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

Shares of Jindal Steel and Power (JSPL) rose over 3 per cent today after the firm said it has prepaid a loan of $357 million of its wholly owned subsidiary Jindal Steel & Power (Mauritius) (JSPML). The prepayment of loan will help clear the entire debt of JSPML. The loan also had corporate guarantees from JSPL India, which will also get released.

JSPL stock opened higher at Rs 485 against the previous close of Rs 476.90 on BSE. The stock has gained 9.16 per cent in three sessions.

The stock rose 3.59 per cent intraday to Rs 494 on BSE. The share has gained 30.08 per cent since the beginning of this year and gained 56.68 per cent in one year.

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

A total of 1.39 lakh shares of the firm changed hands, amounting to a turnover of Rs 6.80 crore. Market cap of the firm rose to Rs 50,035 crore on the BSE.

The stock hit a 52-week high of Rs 501.60 on May 10,2021 and a 52 week low of Rs 296.55 on March 19, 2021.

Share Market LIVE: Sensex, Nifty trade lower amid volatility; Kotak Bank, HUL top losers

Over the past three years, JSPL "has been able to reduce its overseas debt from $1.8 billion to $130 million post this payment". The bulk of JSPL's overseas debt now sits in its Australian subsidiary ($113 million), the company said.

"The Group plans to repay this loan by September 22. JSP Group's net debt has come down from a peak of Rs 46,500 crore to Rs 10,981 crore in December 2021," added the company.

In September last year, JSPL had announced making a prepayment of $106 million to the lenders of its arm Jindal Steel & Power (Australia) Ltd.

Commenting on the latest prepayment, JSPL MD VR Sharma said, "We are pre-paying our lenders to further strengthen our balance sheet and we want to become a net debt-free company by FY23 through accelerated deleveraging. The company is aligned with the India growth story. We will expand our steelmaking capacity to over 15 MTPA by 2025."

According to additional information provided by the company, the Mauritius-based subsidiary is the holding company for its overseas mines and minerals assets.

"The loan was taken for acquiring mines and mineral assets to primarily provide raw material security to JSPL India steel operations," it said.

Stocks in news: SBI, Reliance Industries, HDFC, KEI Industries and more