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Jindal Stainless gets stock exchanges' nod to rejig biz

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Press Trust of India New Delhi
Last Updated : Mar 23 2015 | 5:28 PM IST
Steel maker Jindal Stainless today said it has received approval from stock exchanges to restructure its businesses, a move aimed at boosting profitability and paring debt.
The company's rejig plan includes demerger and listing of a subsidiary on domestic bourses.
"Jindal Stainless Ltd (JSL) has received observation letters from BSE and National Stock Exchange on the draft Composite Scheme of Arrangement among Jindal Stainless, Jindal Stainless (Hisar), Jindal United Steel and Jindal Coke and their respective shareholders and creditors," the company said in a filing to the BSE.
The objective of the scheme which got board approval in December is to unlock value for shareholders to increase profitability, reduction of the debt and improvement of the serviceability of the debt.
At present, the steel maker's debt stands at around Rs 8,500 crore, a company source said, adding that this will come down by Rs 5,000 crore post-restructuring.
"The company is now taking necessary steps tofile the scheme of arrangement with the High Court of Punjab and Haryana, for the implementation of the scheme," JSL said in the filing.

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Under the scheme, Jindal Stainless proposes to demerge its ferro alloys and mining divisions and vest them with Jindal Stainless (Hisar).
It will also transfer stainless steel making facilities in Hisar to Jindal Stainless (Hisar) for a lump sum consideration of over Rs 2,809 crore.
Jindal Stainless will transfer the hot strip plant located in Odisha to Jindal United Steel by way of slump sale for Rs 2,412.67 crore, the company had earlier said.
The company also had proposed to transfer its coke oven plant in Odisha to Jindal Coke by way of a slump sale for Rs 492.64 crore.
Once the rejig scheme becomes effective, Jindal Stainless (Hisar) would seek listing of its equity shares on both the exchanges and its global depository receipts (GDR) at the Luxembourg Stock Exchange.
Shares of Jindal Stainless today jumped by 7.90 per cent to close at Rs 39.60 on the BSE.

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First Published: Mar 23 2015 | 5:28 PM IST

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