JSPL hits 52-week high as board approves divestment in Jindal Power

Shares of Jindal Steel and Power (JSPL) jumped 3 per cent to hit a fresh 52-week high of Rs 455.95 on the BSE after the company board approved divesting entire equity interest in subsidiary Jindal Power to Worldone, a promoter group company, for Rs 3,015 crore.

The board of directors of JSPL has approved the divestment of its entire equity interest (representing 96.42 per cent of the issued and paid-up capital) in Jindal Power (JPL) by way of sale of shares, to Worldone, a promoter group company and a related party to the company, JSPL said in a regulatory filing.

The equity value is an all-cash offer of Rs 3,015 crore, including 3,400 MW coal fired power plants in Chhattisgarh and other non-core assets owned by JPL.

The divestment is subject to receipt of requisite approvals including approval from shareholders of JSPL, approval from lenders of JPL and JSPL, and such other statutory approvals.

Grant Thornton acted as the Transaction Advisor and Cyril Amarchand Mangaldas acted as JSPL’s legal advisor for the transaction.

The divestment is in line with JSPL’s strategic objective to continuously reduce its debt, focus on its India Steel business and significantly reduce its carbon footprint by almost half as part of its ESG objectives, the company added in the release.

At 12.10 pm, the stock was trading 1.54 per cent higher at Rs 449.10 on the BSE as against a rise of 0.89 per cent in the S&P BSE Sensex.