JSW Steel gets board approval to raise up to ₹18,000 crore

The board of JSW Steel on Friday approved an enabling resolution to raise up to ₹18,000 crore. The company said it will raise up to $1 billion in international markets. Of the total fundraise, ₹7,000 crore will be through non-convertible debentures with warrants and ₹3,000 crore will be non-convertible debentures.

The company will raise up to $1 billion (₹8,276 crore) through the issue of non-convertible, senior unsecured fixed rate bonds, in one or more tranches, the company said in a regulatory filing on Friday.

The country's largest steelmaker tapping international markets for funds could herald the return of Indian corporates to the dollar-denominated bond market after a hiatus of over a year.


The board has also approved raising up to ₹7,000 crore through non-convertible debentures with warrants, which can be converted to equity shares and/or through equity shares or convertible securities, other than warrants, for not more than ₹7,000 crore.

Another ₹3,000 crore will be raised through redeemable non-convertible debentures, either through private placement or public issuance. These funds will be used for the replacement of short-term maturity loans, capital expenditure, and to meet long-term working capital requirements.

JSW Steel is currently in the midst of raising its production capacity and plans to spend ₹18,800 crore on capital expenditure in the current financial year.

JSW Steel Q4 net up 12% on higher sales, cooling costs
JSW Steel on Friday reported a 12% year-on-year growth in its consolidated profit for the quarter ended March 31 on the back of its highest-ever quarterly sales and cooling input costs.

The company's consolidated revenue remained largely flat year-on-year at Rs 46,962 crore. This, as lower steel prices this year, offset the gains from a growth in sales volume.

JSW Steel sold 5.68 million tonnes of steel during the quarter at a standalone level and 11% higher year-on-year. At a consolidated level, the company sold 6.53 million tonnes of steel, aided by its expanding production capacity.

Domestic steel prices had touched a decadal high a year ago. However, with the prices of the alloy correcting since, JSW Steel's earnings before interest, tax, depreciation and amortisation (EBITDA) fell 14% to Rs 7,939 crore. EBITDA margin narrowed by 268 basis points to 16.9%.

On Friday, the steelmaker also announced the elevation of Jayant Acharya to the position of joint managing director and chief executive officer. Acharya succeeds Seshagiri Rao as the joint managing director.

The company's board declared a dividend of Rs 3.4 per share, which will result in a total cash outflow of Rs 822 crore. JSW Steel shares closed at Rs 694.4 apiece on the BSE on Friday, up 0.38% from the previous close, while Sensex saw a 0.48% rise.