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The Sajjan Jindal-led firm, which has earmarked Rs 7,500 crore capex for the present fiscal, also plans to raise up to Rs 18,000 crore for part-financing capex and retiring expensive debt, it said in a notice to shareholders ahead of annual general meeting.
"The company has planned to incur capital expenditure aggregating Rs 12,000 crore over next two years to increase the capacity from 14.3 mtpa to 18 mtpa (subject to necessary approvals), besides backward integration projects, cost reduction and efficiency improvement projects," it said.
"It is, therefore, in the interest of the company to proactively arrange long-term funding to meet the planned capital expenditure and other corporate purposes, including refinancing of expensive debt to reduce interest costs and to meet any unlikely shortfall in unforeseen circumstances," it said.
The company has sought shareholders' nod to raise up to Rs 4,000 crore by issuing either convertible or non-convertible debentures (NCDs) to qualified institutional buyers in one or more tranches. It has also sought their approval for raising up to $350 million by issuing global depository receipts or foreign currency convertible bonds or any other instruments in the international market.
Plans are also afoot to issue non-convertible foreign currency dominated bonds not exceeding $2 billion in the international market. "The price at which the securities will be issued will be determined by the Board of Directors of the company in accordance with applicable law and in consultation with the experts / investment bankers / advisors," it said.
The end use of the issue proceeds will be in compliance with applicable laws and regulations, it added.
