JSW Steel to raise $1 bn through QIPs / FCCBs

JSW Steel Ltd will raise $1 billion through QIPs, FCCBs, GDRs, ADRs or warrants to fund its expansion plans and reduce its debt.

In a meeting held today, its board of directors decided to seek an enabling approval from its shareholders at the company's forthcoming AGM to raise long term resources to part finance the company's capex and for other general corporate purposes, including reducing the leverage, JSW said in a statement to the Bombay Stock Exchange.

The company plans to issue equity shares or other securities convertible into equity shares to Qualified Institutional Buyers (QIB) in one or more tranches through a Qualified Institutional Placement (QIP), not exceeding US $1 billion or its Indian Rupee Equivalent in the aggregate.

This amount could also be partly raised through he issue of Foreign Currency Convertible (FCCBs)/ Global Depository Receipts (GDRs) / American Depository Receipts (ADRs) / Warrants and / which can be converted into into equity shares.

The total amount raised through any or all these instruments would not exceed $1 billion, inclusive of such premium as may be determined by the board.