Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Companies / News/  JSW plans 5,000 crore rights issue to buy Bhushan Power
BackBack

JSW plans ₹5,000 crore rights issue to buy Bhushan Power

JSW Steel has submitted a bid of ₹19,700 crore for the Bhushan Power and Steel asset

JSW Steel reported consolidated net profit of Rs 2,087 crore in the second quarter, up 150% from the previous year’s Rs 836 crore, driven by higher volumes. Photo: ReutersPremium
JSW Steel reported consolidated net profit of Rs 2,087 crore in the second quarter, up 150% from the previous year’s Rs 836 crore, driven by higher volumes. Photo: Reuters

Mumbai: Sajjan Jindal’s JSW Steel plans to raise up to 5,000 crore through a rights issue, so as to tie the funding in place to acquire bankrupt Bhushan Power and Steel.

At a press conference that the company held today to announce its second quarter results, MVS Seshagiri Rao, joint MD and group CFO, said the board had also approved the fundraising plan.

“The company is in the midst of implementing and pursuing multiple organic and inorganic growth opportunities," Rao said. “With the objective of further strengthening the balance sheet, the board of directors has accorded in-principle approval for a rights issue of up to 5,000 crore."

JSW Steel has submitted a bid of 19,700 crore for the Bhushan Power and Steel asset, which is the highest of the three submitted. Mint had reported on October 18 that lenders to the bankrupt asset were overwhelming in their support for JSW Steel’s bid, though these details are not public yet.

Separately, JSW has also indicated that if it were to win the asset, it would bring in a financial partner to fund the acquisition. Even so, it will need to bring substantial equity of its own, and hence the need to raise funds through the rights issue.

A decision by the NCLAT on the status of this case is awaited.

JSW Steel, one of the two large private sector steel makers in India, reported consolidated net profit of 2,087 crore in the second quarter, up 150% from the previous year’s 836 crore, driven by higher volumes.

Crude steel production was 4.18 million tonnes (mt) for the quarter, up 6% year on year. Revenue from operations rose 25%, year on year, to 21,552 crore while operating EBITDA was 4,096 crore, up 62%.

In order to simplify the corporate structure, the board of directors of JSW Steel also approved a scheme of amalgamation that would merge four wholly owned subsidiaries — Dolvi Minerals and Metals, Dolvi Coke Projects, JSW Steel Processing Centres and JSW Steel (Salav) — with JSW Ltd.

JSW Steel closed up 0.40% at 353.45 on the BSE on Thursday.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Corporate news and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 26 Oct 2018, 02:26 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App

Chat with MintGenie