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JSW Steel gets shareholders’ nod to raise over Rs14,000 crore

LiveMint logoLiveMint 03-07-2017 PTI

New Delhi: JSW Steel on Monday said it has received shareholders’ approval to raise over Rs14,000 crore through various securities.

Shareholders during the company’s annual general meeting (AGM) gave “consent for private placement of redeemable non-convertible debentures aggregating up to Rs10,000 crore,” the Sajjan Jindal-led firm said in a filing to the BSE.

Besides, an approval was also given for issuance of non-convertible debentures with warrants for an amount not exceeding Rs4,000 crore and/or issue of equity shares or fully, partly or optionally convertible debentures or any other convertible securities (other than warrants).

The shareholders also approved a resolution for “issue of foreign currency convertible bonds/global depository receipts/American depository receipts/warrants and/or other instruments convertible into equity shares optionally or otherwise for an aggregate sum of up to $1 billion,” the filing said.

JSW Steel managing director Sajjan Jindal last week after the AGM said the company has received shareholders’ approval for an enabling resolution to raise $1 billion in foreign currency convertible bonds or through American depositary receipt (ADR)/global depositary receipt (GDR).

On the foreign currency fundraising, he said, “Since there are a lot of stressed assets and the global steel industry is also in bad shape, we feel that there could be opportunities at any given time, where we will not get much time to act. Therefore, we always make it to have an enabling resolution to have a war chest ready so that as and when we spot an asset we can snap them up.”

But Jindal was quick to add that “as of now we have no real plans of diluting our equity”.

The BSE filing mentioned that shareholders also approved the resolution for re-appointment of Jindal as the managing director of the company.

Besides, nod was given for re-appointment of Seshagiri Rao MVS as a whole-time director of the company designated as joint managing director and group chief financial officer.

During the AGM held on 29 June, the resolution pertaining to re-appointment of Vinod Nowal as a whole-time director of the company designated as deputy managing director was also passed.

The company has outlined a capex programme of Rs26,800 crore to expand overall steelmaking capacity to 23 million tonne per annum (MTPA) by March 2020 and increase its downstream flat steel capacity to 7 MTPA by September 2019, along with a few other strategic projects.

The shares of the company closed at Rs205.15 apiece on the BSE, up 0.93% from the previous close.

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