JSW Steel has dropped plans to raise up to $275 million through overseas borrowings as it did not get necessary regulatory clearances, the company said today.
"Since the necessary approval from relevant regulatory authority for the proposed transaction has not been received, the company has decided not to go ahead and the proposed transaction is withdrawn," it said in a filing to the BSE.
The Sajjan Jindal-led firm, however, did not disclosed the name of the relevant authority which denied the permission to raise funds and the reasons behind denial.
A company spokesperson declined to comment on the matter.
The leading steel producer, which has 11 million tonne per annum production capacity, had announced plan to raise up to $275 million through the external commercial borrowing (ECB) route in February.
The money was supposed to be utilised for buyback of outstanding foreign currency convertible bonds (FCCBs), on redemption of outstanding FCCBs and capital expenditure, JSW had said then.
The company had also entered into an indicative, non-binding term sheet with an undisclosed arranger for 5 years plus 1 day period from the date of drawing the money but it was subject to necessary regulatory clearances.
JSW shares closed at Rs 709.75 apiece on the BSE today, down 1.55% from the previous close.
