JSW Steel to invest Rs 5,000 cr on capex in FY16

JSW Steel expects to invest about Rs 5,000 crore on various capital expenditure projects in this fiscal ending March 2016, its Chairman and Managing Director Sajjan Jindal has said.
Besides, the company is closing down non operational subsidiaries in the UK and Kenya, JSW Steel said in a regulatory filing.
"The company is expected to invest approximately Rs 5,000 crore during FY16 on various capital expenditure programmes," Jindal said.
At present, the firm has a capacity of 14.3 million tonnes (MT) across two integrated steel plants in Maharashtra and Karnataka.
Implementation of ongoing projects like modernisation of BF-1 and electrical steel complex at Vijayanagar and the capacity expansion project from 3.3 MTPA to 5 MTPA at Dolvi are progressing satisfactorily and are likely to complete as per schedule, JSW Steel had said earlier this month.

The company aims to add 4 MT to increase its capacity to 18.6 MT in 2015-16.

Jindal also informed the shareholders that "the company is also in the process of closing the non-operational foreign subsidiaries i.E. JSW Steel Service Centre (UK) Ltd, Argent Independent Holdings Ltd and JSW Steel East Africa Ltd."
London-based JSW Steel Service Centre is into processing and sale of steel, while Argent Independent Holdings -- that is also based in London -- is a holding company.
Nairobi-based JSW Steel East Africa is into mining of non-ferrous metal ores and manufacture of basic iron and steel, among others.

JSW Steel's shareholders have already approved company's proposal to raise a total of Rs 14,000 crore through private placement and qualified institutional placement (QIP) route.
The firm's shareholders, at the AGM last month, approved raising up to Rs 4,000 crore through QIP and Rs 10,000 crore by selling non-convertible debentures (NCDs).
Shares of the company today fell by 1.39 per cent to settle at Rs 974.35 apiece on the BSE.