Surrendering all its early gains, shares of Jindal Steel & Power Ltd fell by 3.5 per cent due to profit-booking in a weak broader market, despite the company announcing a Rs 6,500-crore deal to pare debt.
The stock had gained 3.55 per cent to Rs 71.45 in intra- day session following the news, but later pared all its gains on profit-booking and ended at Rs 66.60, down 3.48 per cent on BSE.
On NSE, it fell by 3.55 per cent to close at Rs 66.50.
Shares of JSW Energy ended unchanged at Rs 66.60 from its previous close on BSE.
Billionaire Sajjan Jindal's JSW Energy will acquire a 1,000 mw power plant from his younger brother Naveen-led heavily indebted Jindal Steel and Power Ltd for Rs 6,500 crore.
JSW will pay at least Rs 4,000 crore, excluding net current assets, and an additional Rs 2,500 crore if JSPL's 1,000 mw power plant in Raigarh, Chhattisgarh secures a long term power purchase agreement, the firms said in statements.
JSPL, which has a debt of close to Rs 46,000 crore, said the deal, to be completed by mid-2018, would help meet its liabilities while JSW gained a foothold in coal-rich Chhattisgarh.
JSW would also extend Rs 500 crore as advance against interest. The sale is expected to be completed by June 30, 2018.
Meanwhile, in the broader market the Sensex ended at 25,101.73, down 127.97 points.
