Home / Companies / News /  Board of Jindal Stainless approves raising 99 Cr through NCDs

A mid-cap firm with a market valuation of Rs. 7,199.29 billion that operates in the metal industry is Jindal Stainless Ltd. With production facilities in Haryana, Odisha, and Indonesia as well as a network of countrywide service centres, Jindal Stainless is one of the market leaders for stainless steel in India and the country's largest manufacturer of the commodity. 1.1 million tonnes of stainless steel can be melted annually at Jindal Stainless Limited. At its meeting on September 23, 2022, the board of Jindal Stainless authorised the issuance of up to 990 rated, listed, unsecured, redeemable, non-convertible debentures with a face value of Rs. 10,00,000, totalling Rs. 99 crores, through private placement.

The company has said in a regulatory filing that “We wish to inform you that pursuant to the applicable provisions of the SEBI Listing Regulations, the Sub- committee of the Board of Directors (the "Board") of Jindal Stainless Limited (the "Company") at its meeting held today, i.e. 23rd September, 2022, inter alia, considered and approved: (a) to raise funds by way of Issue of upto 990 (nine hundred and ninety) rated, listed, unsecured, redeemable, non-convertible debentures having face value of Rs. 10,00,000/- (Indian Rupees Ten Lakh only), aggregating to Rs. 99,00,00,000/- (Rupees Ninety Nine Crore only) (“NCDs"), through private placement basis. (b) The funds raised by the issue of NCDs will be utilized towards, repayment of existing debt and high-cost debt facilities, part funding of capital expenditure (including maintenance capex), long term working capital requirements, and reimbursement of capital expenditure for last 6 (six) months. (c) The issue of aforesaid NCDs is within the overall limit as approved by the Board at its meeting held on 7th February, 2022 and intimated to the Stock Exchange(s) by the Company on the same date."

Issue size of Jindal Stainless as per the data available on stock exchange filings

Size of the issue; Upto 990 (nine hundred and ninety) of rated, listed, unsecured, redeemable, non-convertible debentures having face value of Rs. 10,00,000/- (Rupees Ten Lakh only), aggregating to Rs. 99,00,00,000/- (Rupees Ninety Nine Crore only) (“NCDs"), on a private placement basis.

Whether proposed to be listed? Yes, the above-said NCDs are proposed to be listed on BSE Limited.

Tenure of the instrument - date of allotment and date of maturity; Tenure of the NCDs is for 48 months. The date of allotment shall be any date on or before September 30, 2022 (“Allotment date’). The date of maturity of the above-said NCDs shall be at the end of 48 months from the allotment date.

Coupon interest: Fixed coupon of 8.62% per annum. The coupon shall be payable annually from the allotment date. The principal shall be payable as a bullet repayment at the end of 48 months from the deemed date of allotment.

On the NSE, Jindal Stainless Ltd. shares ended trading on Friday at Rs. 137.00 a piece, down 2.84 per cent from the previous close of Rs. 141. The stock has fallen 12.57 per cent over the past year, and it has dropped 29.96 per cent YTD in 2022.

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