| JSW Steel gets shareholder's nod to raise $1 bn via QIP | |
| Press Trust of India / New Delhi July 7, 2009, 10:10 IST | |
JSW Steel, the country's largest private steel producer, has got shareholders' approval for raising about Rs 4,775 crore through qualified institutional placement route aimed at reducing company's debt.
"We have got enabling resolution passed by our shareholders at our Annual General Meeting yesterday to raise $1 billion through QIP. It is aimed to reduce the company's debt," JSW Steel Vice-Chairman and MD Sajjan Jindal told PTI.
The board of the company will decide on the "timing" and "quantum" of the issue, he said.
JSW Steel's consolidated debt stands at Rs 14,500 crore.
Elaborating on the plan to reduce debt, JSW Steel Joint Managing Director and Group CFO Seshagiri Rao said that the company's consolidated debt-equity ratio stands at 1.8:1, which it wants to bring down.
"The aim is to reduce the consolidated debt-equity ratio to 1.5:1," Rao said.
The company will look to raise $1 billion within a year. The resolution is valid for one year, Rao said.
JSW Steel also plans to tap funds through diferent routes like American depository receipts, global depository receipts and foreign currency convertible bonds to support its expansion programmes.
"We may look at other routes such as FCCB's. But at present we aim to reduce our debt, through the QIP, for which we have got shareholder's approval," Rao said.
The company is working to increase its production capacity to 10-million tonnes per annum from 7.8 million tonnes at present. JSW Steel is also undertaking greenfield expansion projects to set up 12-MTPA plants in Jharkhand and West Bengal, each.
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