Jindal Saw plans to raise upto Rs 3,000 cr through securities

Pipe products maker Jindal Saw today said it will seek shareholders nod to raise close to Rs 3,000 crore through securities for capital expenditure as well as refinancing of loans.
The company, part of the USD 18-billion OP Jindal Group, plans to raise up to Rs 2,000 crore through non-convertible debentures (NCDs) as well as via the Qualified Institutional Placement (QIP) route.
The firm is also planning to raise up to USD 150 million (close to Rs 1,000 crore) from international market through Global Depository Receipts (GDRs), American Depository Receipts (ADRs) or Foreign Currency Convertible Bonds (FCCBs), among others.
The firm will approach its shareholders at the annual general meeting (AGM) scheduled for next month, it said in a BSE filing.

"In order to augment long-term resources for financing... the ongoing capital expenditure for refinancing of part of the existing loans, to reduce interest costs and for general corporate purposes, the firm may offer or invite subscription to secured/unsecured redeemable NCDs, in one or more trances on private placement basis," it added.
An enabling resolution is... Being proposed to borrow funds by offer or invitation to subscribe to secured/unsecured redeemable NCDs for an amount not exceeding Rs 1,000 crore. This resolution would be valid for a period of one year from the date of this AGM, it said.

Jindal Saw, through an enabling special resolution, plans to raise additional long term resources depending on market dynamics by way of equity shares and/or Fully Convertible Debentures/Partly Convertible Debentures/Optionally Convertible Debentures/NCDs... Through QIP, not exceeding Rs 1,000 crore.

On fund raising, the firm explained: "It is in the interest of the company to raise long term resources with convertible option so as to optimise capital structure for future growth.
"The proceeds of the issue will be used for long-term funding to meet the planned capital expenditure and for other corporate purposes, including refinancing of expensive debt, to reduce interest costs and to meet any unlikely shortfall in unforeseen circumstances."
Jindal Saw also said that to raise funds for the "normal capital expenditure, ongoing expansion, modernisation, general corporate purposes, working capital requirement etc", the firm may, at an appropriate time, make an offering by way of public offer and/or private placement of GDRs, ADRs, FCCBs, or any other equity and/or preference share related instruments.

The amount to be raised is up to USD 150 million or equivalent to other currencies to the international investors in one or more tranches, it added.
Shares of Jindal Saw today rose by over six per cent to settle at Rs 78.35 apiece on the BSE.