JSPL hits 52-week high on divestment of majority stake in subsidiary

The company has accepted an all-cash offer of Rs 3,015 crore from Worldone to divest its 96.42 percent stake in Jindal Power.

Moneycontrol News
April 27, 2021 / 10:06 AM IST
 
 
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Jindal Steel & Power (JSPL) touched 52-week high of Rs 455.95, rising 3 percent in the morning trade on April 27 after it divested its majority stake in a subsidiary.

".... has accepted a binding offer from Worldone, to divest its 96.42 percent stake in Jindal Power (JPL), a material subsidiary of the company," a press release said.

The divestment is in line with JSPL’s strategic objective to continuously reduce its debt, focus on its India steel business and significantly reduce its carbon footprint by almost half as part of its ESG objectives.

The equity value is an all-cash offer of Rs 3,015 crore for 96.42 percent stake in JPL including 3,400 MW coal-fired power plants in Chhattisgarh and other non-core assets owned by JPL.

The divestment is subject to receipt of requisite approvals.

"It is yet another step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders," said VR Sharma, MD- JSPL.

At 0949 hours, Jindal Steel & Power was quoting at Rs 453.30, up Rs 11, or 2.49 percent on the BSE.
Moneycontrol News
TAGS: #Buzzing Stocks #Jindal Steel & Power
first published: Apr 27, 2021 10:06 am