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    JSW Steel to consider raising funds through QIP

    Synopsis

    JSW Steel has also been diversifying its sources of funding.

    Fund-raising-Getty-1200Getty Images
    Mumbai : JSW Steel would be considering raising long term funds by way of a qualified institutional placement (QIP) at its board meeting scheduled to be held on May 24, the company informed the stock exchange on Monday.

    The company's board is meeting on May 24 to discuss its financial results for the quarter and financial year ending March, 2019.

    "We now hereby inform you that in the aforesaid meeting, the Board would also be considering raising of long term funds through issuance of Non-convertible Debentures with warrants which are convertible into or exchangeable with equity shares of the Company and/or Equity Shares and/or Convertible Securities (other than warrants), by way of a Qualified Institutional Placement," the company said in a notification on the Bombay Stock Exchange (BSE).

    If the board approves of the QIP, the company would place the plan across shareholders for their approval at the company's annual general meeting (AGM).

    More than a month ago the steel major had announced raising $500 million by selling dollar bonds, a move aimed at mobilising funds for the brownfield expansion underway at its 12 MT Vijayanagar plant in Karnataka. The company plans to expand capacity at its largest steel plant from the current 12 MT to 18 MT. It expects to complete expansion from 12 MT to 13 MT by March, 2020.

    JSW Steel has also been diversifying its sources of funding.

    In March, it entered into a 5-year Advance Payment and Supply Agreement ( APSA) with Duferco International Trading Holding (DITH) to supply steel products to the latter for the said period. The deal inked at a consideration of 700 million dollars was the largest trade finance deal to have arranged in the steel sector in India and was entered into to help JSW Steel to funds its various growth plans.

    JSW Steel is in an expansion mode. Apart from the expansions lined up at both its Vijaynagar and Dolvi plants, it has also shown interest in some stressed assets under the insolvency law. It has reportedly bid Rs 19,650 crore for Bhushan Power and Steel and has also offered Rs 1,500 crore for color coated steel maker Asian Colour Coated Ispat.



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    Download The Economic Times News App to get Daily Market Updates & Live Business News.

    Subscribe to The Economic Times Prime and read the Economic Times ePaper Online.and Sensex Today.

    Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price

    ...more
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