Share of JSPL rose over 4 per cent to hit fresh 52-week high of Rs 501.60 after the company announced that it has made a prepayment of Rs 2,462 crore to its term lenders.
The stock has gained 450 per cent in one year and risen 84 per cent since the beginning of this year. It ended in green at Rs 490.05, up 2.01 per cent on the Bombay Stock Exchange. Market cap of the firm rose to Rs 49,985.88 crore.
The company informed that this announcement is in continuation of its long-stated financial strategy of debt reduction and building a robust balance sheet with an optimum capital mix.
"JSPL has worked tirelessly with a singular focus of debt reduction of more than Rs. 20000 crores from a peak of approx. Rs.46,500 Cr in 3QFY17 to Rs.25,600 Cr as reported in 3QFY21. This reduction of Rs.2,462 cr is over & above the annual committed debt reduction in the financial year 2020-2021," the company added.
"The significant debt reduction is part of our long-term financial strategy to create a strong balance sheet. In the coming quarters we intend to further strengthen our balance sheet and become net debt-free in the near future," said Mr. V R Sharma, Managing Director, JSPL.
The company's production stood at 7.51 million tonnes during the financial year ended March 31, 2021.
JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.