| The Ratan Jindal-controlled Jindal Stainless Steel is planning an international equity offering of $75 million (approximately Rs 350 crore).
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| A special resolution pertaining to the fund mobilisation is expected to be placed before the shareholders at the company's forthcoming annual general meeting.
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| Sources close to the development said, "Jindal has planned to come out with an equity linked issue to be floated in the international market. As of now, the instrument of the issue is not finalised, but it could be through GDR, convertible debentures or an private equity placement."
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| The issue is expected to dilute the promoter holding by 4-5 per cent. "An equity offering in the international market gives the company a larger investor base compared with a domestic market offering," sources said.
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| Jindal recently shelved its plan to raise Rs 100 crore through the external commercial borrowing (ECB) route. The company is currently in the process of tying up funds to the tune of Rs 450 crore from the local market. Sources said that the company is talking to bank and financial institutions for raising the long term loans.
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| "It is cheaper to raise debt from the local market, compared with the current cost of borrowing in the international market and the funds are available for a longer period," sources added. The company recently completed an issue of non-convertible debentures amounting to Rs 200 crore in the local market.
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| The company is lining up funds for its upcoming project in Orissa, which entails an investment of Rs 7,000 crore. The project is spread over three phases and includes setting up of a 1.6 million tonne integrated stainless steel manufacturing facility, a 500 mw captive power unit, and a 5 lakh tonne ferro alloys manufacturing set-up.
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| The first phase, which is set to be completed by September 2005, includes setting up a 2 lakh tonne per annum ferro alloys manufacturing facility, a 50,000 tonne ferro manganese and ferro silicon unit, a 4 lakh tonne per annum coke oven battery and a 38 MW co-generation captive power plant. The company has outlined an investment of Rs 960 crore for the first phase. |
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