JSPL shareholders okay 96.42% stake sale in Jindal Power for Rs 7,401 cr

At the company's EGM held electronically on Friday, 97.12% of Jindal Steel shareholders via special resolution approved divestment of the firm's power business

Jindal Steel & Power (JSPL) on Friday received shareholder approval for divestment of the entire holding of the company in its subsidiary Jindal Power Ltd.

At the company’s extraordinary general meeting (EGM) held electronically today, 97.12 per cent of Jindal Steel shareholders via special resolution approved divestment of the company’s power business.

In April, Naveen Jindal-led Jindal Steel & Power (JSPL) had sought shareholders’ approval to sell 96.42 per cent of shares of Jindal Power Ltd to Worldone Pvt Ltd, a company owned by promoter group Jindal family.

Worldone will now buy out all the equity shares and redeemable preference shares of Jindal Power Limited held by JSPL for a total consideration of about Rs 7,401 crore.

Alongside, the EGM which had also floated an ordinary resolution to seek shareholder approval for divestment of power entity to Worldone Private Limited received relatively lower e-votes in favour at 90.28 percent with 9.72 percent voting against this resolution.

Divestment of the company’s power business is in line with JSPL’s strategic objective to bring down its debt and focus on domestic steel business going ahead.

In April, JSPL also exited Oman business, where it held 48.99 percent stake via Jindal Steel & Power (Mauritius) Limited.

Apart from selling off non-core businesses to lower its debt, the company in July this year pre-paid Rs 2,462 crore debt to lenders in a bid to further strengthen its balance sheet.

Delhi-based JSPL is into long steel products with its 6 million tonne capacity located at Angul in Odisha.  

Shares of JSPL today ended at Rs 392 per share on BSE, up 3.86 percent from Thursday’s close.