JSPL promoters in preliminary talks to raise up to $3 billion

The promoters of Jindal Steel and Power Ltd. (JSPL), which are led by industrialist Naveen Jindal, are in preliminary discussions with major international private credit funds and foreign banks to raise up to $3 billion, which may be used to increase promoter holdings. The individuals previously mentioned claim that the discussions with lenders are in their very early stages and there is no guarantee of a transaction.

One of the individuals listed above stated, "The talks are preliminary at this time, but the thought process behind the move is a potential delisting of the company in the future." Promoters "may equally decide not to explore any delisting offers or increase their stake from the current level."

One of India's biggest steel producers is JSPL, which is a part of the OP Jindal group. The promoter Jindal family has boosted its investment by 0.8 percentage points since the June quarter of last year, according to the most recent figures, to 61.2 percent. A spokesman stated, "We do not comment on market rumours or speculation." "The company reserves its legal rights and is required to protect the interests of its stakeholders," it says.

JSPL reported ebitda (earnings before interest, tax, depreciation, and amortisation) of 15,513 crore in FY22, benefiting from a rise in steel prices in recent years. Ebitda moderated to $9,935 crore in FY23. ICICI Direct analysts predict that the business will post ebitda of 11,687 crore in FY24.

With over 2,000 mw of thermal, 5,400 mw of hydro, and 650 mw of thermal power assets planned in Africa, the power company is currently expanding quickly. For $270 million, Brazilian miner Vale sold the Moatize coal mine in Mozambique to Vulcan Minerals in 2021, along with a nearby railway link. The asset now provides coal to the listed JSPL.

In addition to this, according to insiders, Jindal also intends to put up sizable renewable energy assets through privately-owned firms. Jindal stated that his company will sign a contract with the Andhra government for investments in renewable energy in March.