JSW Steel gets shareholder's nod to raise USD 1 bn via QIP

New Delhi, July 7 (PTI) JSW Steel, India's largest
private steel producer, has got shareholders' approval for
raising about Rs 4,775 crore through qualified institutional
placement route aimed at reducing company's debt.

"We have got enabling resolution passed by our
shareholders at our Annual General Meeting yesterday to raise
USD 1 billion through QIP. It is aimed to reduce the company's
debt," JSW Steel Vice-Chairman and MD Sajjan Jindal told PTI.

The board of the company will decide on the "timing" and
"quantum" of the issue, he said.

JSW Steel's consolidated debt stands at Rs 14,500 crore.

Elaborating on the plan to reduce debt, JSW Steel Joint
Managing Director and Group CFO Seshagiri Rao said that the
company's consolidated debt-equity ratio stands at 1.8:1,
which it wants to bring down.

"The aim is to reduce the consolidated debt-equity ratio
to 1.5:1," Rao said.

The company will look to raise USD 1 billion within a
year. The resolution is valid for one year, Rao said.

JSW Steel also plans to tap funds through diferent routes
like American depository receipts, global depository receipts
and foreign currency convertible bonds to support its
expansion programmes.

"We may look at other routes such as FCCB's. But at
present we aim to reduce our debt, through the QIP, for which
we have got shareholder's approval," Rao said.

The company is working to increase its production
capacity to 10-million tonnes per annum from 7.8 million
tonnes at present. JSW Steel is also undertaking greenfield
expansion projects to set up 12-MTPA plants in eastern states
of India Jharkhand and West Bengal, each. PTI SCV
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