JSPL promoter Naveen Jindal explores potential $3 billion funding

JSPL, a part of the OP Jindal group and one of India's largest steel producers, is currently discussing raising up to $3 billion.

Naveen Jindal, the promoter of JSPL, is talking to global private credit funds and foreign banks about this potential funding, according to a report by The Economic Times. The purpose of raising this money would be to potentially increase the ownership stake of the Jindal family in the company.

The discussions with lenders are still at an early stage, and there is no certainty that a transaction will take place. Reportedly, another outcome being considered is the delisting of the company in the future, which means removing its shares from the stock market. However, the promoters may also decide not to increase their stake or explore other options related to delisting.

In the financial year 2022, the company reported Ebitda (earnings before interest, tax, depreciation, and amortisation) of Rs 15,513 crore. In the following financial year, the Ebitda decreased to Rs 9,935 crore. Reports add that analysts expect JSPL to report an Ebitda of Rs 11,687 crore in the financial year 2024.

India's targeted steel capacity for 2030 is 300 mt, and the top players have tuned their plans accordingly – JSW Steel is targeting 50 mt, Tata Steel at 40 mt, SAIL 34-35 mt, and JSPL aims for more than 25 mt, a significant increase compared to the financial year 2022 when its capacity was at 9.6mt).