Jindal Steel expects to sell over 96% Jindal Power stake by December
Steel

Jindal Steel expects to sell over 96% Jindal Power stake by December

Jindal Steel and Power Limited (JSPL) is hopeful of selling 96.42% stakes in Jindal Power Ltd (JPL) at Rs 7,401 crore to Worldone by December 2021.

Over 97% of the company's shareholders have approved the proposal to sell 96.42% stakes that Jindal Power holds to Worldone for Rs 7,401 crore, on Friday.

According to the official sources, the shareholders have faith in JSPL's environmental, social, and governance (ESG) Vision. The company's almost 90% of the shareholders have approved and voted in favour of the Jindal Power divestment to Worldone. The process of divestment will be cleared by the end of this year.

As per the deal, Worldone is expected to buy JPL's total equity shares and redeemable preference shares of JSPL for approximately Rs 7,401 crore.

From the total cost, Rs 3,015 crore will be paid by cash, and the remaining Rs 4,386 crore will be the takeover of liabilities and obligations of JSPL with inter-corporate deposits and capital advances paid by JPL to JSPL.

The divestment will have debt associated with JPL of approximately Rs 6,566.440 crore, moving out from JSPL's consolidated books, hence strengthening JSPL's balance sheet.

Earlier, JSPL, through Grant Thornton Advisory Pvt Ltd, an independent transaction advisor, had taken up an additional competitive and public bidding for selling the entire stake in JPL to maximise the value for the shareholders.

Inviting the Expression of Interest (EOI) from domestic and international bidders was published in newspapers but did not receive any EOI, so the revised offer from Worldone was selected as the winning bidder for JSPL.

JPL's divestment is a strategic objective of JSPL to focus on the Indian steel business, become a net debt free firm, and reduce its carbon footprint by almost half of the ESG goals.

Image Source


Also read: Jindal Steel plans $2.4 bn investments to improve demand prospects

Also read: Jindal Steel plans to invest $2.4 billion in next six years

Jindal Steel and Power Limited (JSPL) is hopeful of selling 96.42% stakes in Jindal Power Ltd (JPL) at Rs 7,401 crore to Worldone by December 2021. Over 97% of the company's shareholders have approved the proposal to sell 96.42% stakes that Jindal Power holds to Worldone for Rs 7,401 crore, on Friday. According to the official sources, the shareholders have faith in JSPL's environmental, social, and governance (ESG) Vision. The company's almost 90% of the shareholders have approved and voted in favour of the Jindal Power divestment to Worldone. The process of divestment will be cleared by the end of this year. As per the deal, Worldone is expected to buy JPL's total equity shares and redeemable preference shares of JSPL for approximately Rs 7,401 crore. From the total cost, Rs 3,015 crore will be paid by cash, and the remaining Rs 4,386 crore will be the takeover of liabilities and obligations of JSPL with inter-corporate deposits and capital advances paid by JPL to JSPL. The divestment will have debt associated with JPL of approximately Rs 6,566.440 crore, moving out from JSPL's consolidated books, hence strengthening JSPL's balance sheet. Earlier, JSPL, through Grant Thornton Advisory Pvt Ltd, an independent transaction advisor, had taken up an additional competitive and public bidding for selling the entire stake in JPL to maximise the value for the shareholders. Inviting the Expression of Interest (EOI) from domestic and international bidders was published in newspapers but did not receive any EOI, so the revised offer from Worldone was selected as the winning bidder for JSPL. JPL's divestment is a strategic objective of JSPL to focus on the Indian steel business, become a net debt free firm, and reduce its carbon footprint by almost half of the ESG goals. Image Source Also read: Jindal Steel plans $2.4 bn investments to improve demand prospects Also read: Jindal Steel plans to invest $2.4 billion in next six years

Next Story
Real Estate

Smartworld Awards Rs 5.32 Billion Contract to Varindera Constructions

Smartworld, one of the fastest growing real estate players in Gurugram, has committed contracts worth approximately Rs 14 billion for its various projects in just six months.For its upcoming iconic project, Smartworld Sky Arc, the company has awarded the construction mandate to Varindera Constructions Limited for Rs 5.32 billion. The project spans 6.9 acre and includes over 900 units in its first phase. Smartworld's total investment in the development of Sky Arc is approximately Rs 17 billion.The company was in the news recently when they awarded Ahluwalia Contracts (India), the mandate for Sm..

Next Story
Infrastructure Urban

Mitsubishi Electric eyes CAPEX investment in India’s CNC market

Mitsubishi Electric is looking to invest in CAPEX in India. Masaya Takeda, General Manager of CNC Systems, noted that the division has tripled its business growth since 2019 and has subsequently made strong investments in India. However, he denied disclosing any details of investment.The machine tools industry in India is growing at an annual rate of 20 per cent, with the CNC market expanding significantly, particularly post-Covid.While automotive manufacturing remains a key growth driver, Takeda expects a steady increase in demand across industries such as general engineering, automotive, and..

Next Story
Real Estate

Essentia Home Opens Second Delhi Store

After the overwhelming success of its flagship store in Gurugram, Essentia Home is set to make a striking debut in New Delhi. Founders Hardesh and Monica Chawla, the creative visionaries behind Essentia Environments, proudly unveil their second store on MG Road in the Delhi Design District. A seamless extension of their 25-year journey in redefining luxury interiors, this new space offers a curated experience of contemporary living infused with a global sensibility – all crafted in India.Spearheading this new chapter is Hridik Chawla, who leads the Essentia Home Experience Center with a comm..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?