JSW Steel gets shareholders nod to raise up to Rs 14,000 cr

New Delhi: JSW Steel today said its shareholders have approved company’s proposal to raise a total of Rs 14,000 crore through private placement and qualified institutional placement (QIP) route. The firm’s shareholders at the Annual General Meeting (AGM) earlier this week approved raising up to Rs 4,000 crore through QIP and Rs 10,000 crore by selling non-convertible debentures (NCDs).[caption id=“attachment_2332836” align=“alignleft” width=“380”]  Representational image. Reuters[/caption] Both the proposals were through special resolution, JSW Steel said in a BSE filing. The fund will be utilised for planned capital expenditure including refinancing of expensive debt and reducing interest costs, among other corporate purposes, JSW had said in its annual report. The NCD sale may be carried out in one or more tranches in the current fiscal on a private placement basis. Reacting to the news, JSW Steel scrips rose 2.09 percent to Rs 829.50 per share at the BSE in afternoon trade. The firm said it will be completing its present brownfield expansion to reach 18 million tonnes per annum (mtpa) capacity by the end of financial year 2015-16. It is targeting 40 MTPA capacity by 2025 with significant investment in mineral resources such as iron-ore and coal. The company also plans to raise long-term resources with convertible option so as to optimise capital structure for future growth. “The proceeds of the issue will be used for long-term funding to meet the planned capital expenditure and for other corporate purposes, including refinancing of expensive debt, to reduce interest costs and meet any unlikely shortfall in unforeseen circumstances,” the report had said. On Wednesday, JSW Steel reported a net loss of Rs 107 crore on a consolidated basis for the first quarter ended 30 June 2015 against a net profit of Rs 657 crore a year-ago. Total consolidated income too declined 13 percent to Rs 11,601 crore in April-June quarter of this fiscal from Rs 13,254.07 crore in the same quarter of the 2014-15 fiscal. PTI