Jindal Stainless (JSL) today said it has no plan to sell stake in Jindal Stainless (Hisar), but will list the demerged entity on domestic bourses after getting court's approval for the proposed business restructuring.
"There are no such plans for JSHL. The demerged entity is being created to unlock value for shareholders. The listing process will be initiated post the high court approval," said company's ED and CFO J P Verma.
He was replying to a question on whether JSL is planning to sell stake in JSHL after the proposed restructuring of its businesses.
The Board of the country's largest stainless steelmaker earlier this week gave approval to restructure its business that includes demerging of JSHL and listing it on the domestic bourses, aimed at boosting profitability and paring debt.
Under the planned scheme, JSL proposes to demerge ferro alloys and mining divisions and vest them with JSHL. It also plans to transfer stainless steel making facilities in Hisar to JSHL.
JSL would continue to have its Odisha-based stainless steel manufacturing operation, ferro alloys plant and captive power plant, Verma said.
"JSL currently has a term debt in excess of Rs 8,500 crore, which is expected to get reduced on account of the rejig by more than Rs 5,000 crore," he added.
Announcing the proposed restructuring of its businesses, JSL said the objective of the scheme was unlocking value for shareholders to increase profitability, reduction of the debt and improvement of the serviceability of the debt.
The scheme also aims to increase capacity utilisation, enable the backward integration, ensure long-term stability and focused management of different business verticals.
