Jindal Stainless board approves raising up to Rs 5,000 cr

Jindal Stainless Ltd (JSL) on Wednesday said its board has approved a proposal to raise up to Rs 5,000 crore through multiple financial instruments.

The board of directors of the company at its meeting on Wednesday approved raising funds up to Rs 5,000 crore or equivalent in any freely convertible foreign currency, an exchange filing by the company said.

The company looks to raise the amount by issue of debt securities including secured or unsecured non-convertible redeemable debentures or bonds or commercial paper or notes (listed/unlisted) or any combination thereof, through private placement basis or otherwise, in one or more tranches or any other method in the domestic/international market.

The board has authorized its sub-committee to determine and finalize the form, denomination, manner, terms and conditions of raising the aforesaid funds, which will be informed to the stock exchanges in due course of time. The funds so generated will be used to refinance/redeem/repay existing financing arrangements, finance capital expenditure and/or for general corporate purposes (including financing of long-term working capital and augmentation of cash flows of the company), JSL said.

Part of O P Jindal Group, Jindal Stainless is a leading stainless steel maker with an annual melting capacity of around 2.9 million tonnes. It has two manufacturing complexes in Haryana and Odisha and an overseas manufacturing unit in Indonesia.

Besides, it has six service centres in India and one in Spain.