BackJSW Steel seeks shareholder approval to raise Rs4,000 crore via QIP
The firm will seek the approval at its annual general meeting on 28 July
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Mumbai: Steel maker JSW Steel Ltd on Monday said it will seek shareholder approval to raise up to ₹ 4,000 crore through a qualified institutional placement (QIP).
The firm will seek the approval at its annual general meeting on 28 July, the company said in a statement to the BSE.
In May 2014, the company’s board decided to raise long-term capital through several routes to part-finance the company’s capital expenditure needs and for reducing the firm’s debt.
As on 31 March 2015, the firm’s long-term borrowings stood at ₹ 25,496.8 crore, up from ₹ 21,054.3 crore on 31 March 2014.
In August last year, the company entered into a ₹ 1,000 crore agreement with Welspun Enterprises to acquire its entire stake in sponge iron maker Welspun Maxsteel.
According to a 10 March Press Trust of India report, the steel maker is in talks for a domestic buy-out. The report did not mention the value of the steel asset that the firm is looking to buy.
JSW Steel has been actively looking for acquisition opportunities as it looks to increase its manufacturing capacity to 40 million tonnes per annum by 2025. The company has an installed capacity of 14.3 million tonnes per annum, according to its website.
Apart from the fund raising through a QIP, the steel manufacturer is also seeking shareholder approval to raise debt to the tune of ₹ 10,000 crore through a sale of non-convertible debentures, in one or more tranches, the company statement on Monday said.
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