Jindal Steel and Power (JSPL) will seek shareholder approval to raise up to Rs 10,000 crore by issuing non-convertible debentures (NCDs) on a private placement basis.
NCDs are a secured debt instrument and offer high returns with moderate risk. They cannot be converted into shares.
In a communique to the BSE, the steel maker said its board also approved seeking shareholders' nod through postal ballot to increase the company's borrowing limit to Rs 50,000 crore and for giving loans or guarantees, providing securities and making of investments in securities up to Rs 20,000 crore.
The company would seek approval for proposals to enhance the strength of the board to 18 from 13 now and appointment of K Rajagopal, group Chief Financial Officer and director, as whole-time director.
JSPL has fixed June 5 as the date for completion of dispatch of notice along with the postal ballot form to shareholders. The result of the ballot will be declared on July 9.
