JSPL to raise up to Rs 15,000 cr through securities

Jindal Steel and Power Ltd (JSPL) will seek shareholders' nod for raising up to Rs 15,000 crore via securities for loan refinancing and capital expenditure.
The Naveen Jindal-led firm is also evaluating various options including selling stake in its overseas subsidiaries.
In a BSE filing, JSPL said its Board has been authorised to "offer or invite subscription for non convertible debentures, in one or more series/tranches, aggregating up to Rs 10,000 crore on private placement."
It added that in order to "augment long term resources for financing, the ongoing capital expenditure and for general corporate purposes, the Board may, at an appropriate time, offer or invite subscription for secured/ unsecured redeemable non-convertible debentures (NCDs) in one or more series/ tranches on private placement, issuable/redeemable at par".

JSPL in the filing further said that it needs funds for meeting the capex and opex requirements with adequate mix of debt and equity.
"It is therefore proposed to have enabling approvals to raise funds through issue of adequate securities in Indian and/or international markets by way of Further Public Offering (FPO) and/or Qualified Institutional Placement (QIP) to Qualified Institutional Buyers (QIBs) and/or other persons for an amount not exceeding Rs 5,000 crore...," it added.

The firm will put these proposals before the shareholders at its annual general meeting scheduled next month.
Meanwhile, in a separate filing, the firm responded to a regulatory clarification about its plans to offload a part of its stake in its foreign subsidiaries, saying, "We are in the process of evaluating various options and when at the time of confirmed decision making, we will intimate the same."

Earlier this month, JSPL while presenting results for the June quarter had said: "Company is also in the midst of taking concrete steps to reduce its working capital and strengthen its financial by exploring various avenues to reduce its debt.
"Sale of non-core assets and listing of subsidiaries are few of options which the company is vigorously pursuing to reduce debt in 2015-16."
The firm's overseas businesses expands to Africa, Oman (Middle East), Australia and Indonesia.
JSPL shares today rose by 2.15 per cent to settle at Rs 68.95 apiece on BSE.