In a move aimed at deleveraging its balance sheet, Jindal Steel and Power on Monday said it had completed the sale of oxygen plant assets at its Raigarh and Angul units for Rs 1,121 crore with SREI Equipment Finance Limited.
“Under the transaction, JSPL has divested its Oxygen Plant Assets at its integrated steel plants at Raigarh (Chhattisgarh) and Angul (Odisha), and received a total consideration (inclusive of taxes) of Rs 1,121 crore. JSPL and SREI Equipment Finance Ltd have also entered into a Lease Back agreement of the Oxygen Plant Assets for continued operations by JSPL for manufacturing of steel at the respective plants,” the company said in a statement.
The move would make JSPL an Asset-Light company and enhance its cost efficiencies.
“JSPL will continue to manage these cutting-edge oxygen plant capacities for its 9.6 MTPA domestic steel plants under a Lease Back agreement, thereby retaining full operational control,” Naushad A Ansari, CEO – Steel Business, JSPL said in the statement.
The company has commissioned the 4 million tonnes per annum (MTPA) blast furnace in the last quarter, which marks the completion of its 6 MTPA integrated steel plant at Angul (Odisha). It is also operating 3.6 MTPA integrated steel plant at Raigarh (Chhattisgarh).
Meanwhile, the company's long-serving managing director and group CEO Ravi Uppal announced his exit from JSPL, last month.
The debt-laden firm had defaulted in December on interest payment on non-convertible debentures.
Jindal Steel & Power Ltd is currently trading at Rs 158.1, up by 3.74% from its previous closing of Rs 152.4 on the BSE.