Jindal Stainless (JSL), the country's largest stainless steel producer, today said it will raise up to Rs 500 crore to part fund the second phase of its Rs 5,700-crore Orissa project.
The company is mulling over different fund raising instruments such as rights issue, FCCBs/ global depository receipts (GDRs)/ American depository receipts (ADRs) to fund the likely deficit, though it maintained the financial closure for the project has been achieved.
"Financial closure for the project is complete. Debt has already been raised. To partly fund the equity component of the project, we will raise up to Rs 500 crore," JSL Director (Strategy & Business Development) Arvind Parakh told PTI.
Of the Rs 5,700 crore required for the second phase of the proposed 1.6-MTPA stainless steel plant in Orissa, JSL has raised about Rs 4,400-4,500 crore debt, while the rest would be borne by the promoter and the company's internal accruals.
Parakh said the promoters equity worth Rs 200-250 crore is already in place and the fund to be raised would meet the likely shortfall in the firm's internal accruals on account of losses suffered amidst the global industrial downturn.
"Promters' equity of Rs 200-250 crore is already in place. With the current losses, there is a likely shortfall in our internal accruals. The fund raised would meet the shortfall," he added.