JSL Stainless reports Rs 98cr loss in Q2
JSL Stainless plans to raise Rs 1,500 crore by issuing securities and placement of shares with qualified institutional buyers.
By PTI | Updated:
MUMBAI: JSL Stainless, which today reported a loss of Rs 97.94 crore for the July-September quarter of 2011-12, plans to raise Rs 1,500 crore by issuing securities and placement of shares with qualified institutional buyers.
The Ratan Jindal-headed firm had reported a net profit of Rs 64.66 crore for the corresponding quarter of 2010-11.
However, it incurred losses during the July-September quarter due to foreign exchange losses of Rs 154.95 crore.
"On account of highly volatile foreign currency exchange movements and current economic global uncertainties, there has been mark to market ( MTM) net losses of Rs 154.95 crore on outstanding foreign currency monetary items/derivative contracts," the company said in a regulatory filing.
During the quarter, net sales increased by 5.65 per cent at Rs 1,837.64 crore during the quarter under review vis-a-vis Rs 1,739.41 crore of the July-September period of last fiscal, the filing added.
Operations and profitability of ferro alloy and thermal power plant of the company in Orissa were "adversely affected on account of higher input prices of chrome ore and coal due to prevailing trade policies of state/central government establishments", the filing added.
JSL Stainless has also decided to rename itself to Jindal Stainless Ltd and has appointed Ramesh R Nair as its President and Executive Director, the company said in a separate filing.
It added that the company will raise up to USD 150 million (around Rs 750 crore) through issuance of securities from the market.
Besides this, the Ratan Jindal headed firm will also issue shares to institutional buyers through Qualified Institutional Placement (QIP) to raise upto Rs 750 crore additionally, the filing said, adding that both the proposals have been approved by the company Board today.
However, the JSL filing did not state any time line for the fund raising, while a company spokesperson refused to comment on the issue.
Shares of the company closed today at Rs 93 apiece on the BSE, up 0.05 per cent from the previous close.
The Ratan Jindal-headed firm had reported a net profit of Rs 64.66 crore for the corresponding quarter of 2010-11.
However, it incurred losses during the July-September quarter due to foreign exchange losses of Rs 154.95 crore.
"On account of highly volatile foreign currency exchange movements and current economic global uncertainties, there has been mark to market ( MTM) net losses of Rs 154.95 crore on outstanding foreign currency monetary items/derivative contracts," the company said in a regulatory filing.
During the quarter, net sales increased by 5.65 per cent at Rs 1,837.64 crore during the quarter under review vis-a-vis Rs 1,739.41 crore of the July-September period of last fiscal, the filing added.
Operations and profitability of ferro alloy and thermal power plant of the company in Orissa were "adversely affected on account of higher input prices of chrome ore and coal due to prevailing trade policies of state/central government establishments", the filing added.
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JSL Stainless has also decided to rename itself to Jindal Stainless Ltd and has appointed Ramesh R Nair as its President and Executive Director, the company said in a separate filing.
It added that the company will raise up to USD 150 million (around Rs 750 crore) through issuance of securities from the market.
Besides this, the Ratan Jindal headed firm will also issue shares to institutional buyers through Qualified Institutional Placement (QIP) to raise upto Rs 750 crore additionally, the filing said, adding that both the proposals have been approved by the company Board today.
However, the JSL filing did not state any time line for the fund raising, while a company spokesperson refused to comment on the issue.
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Shares of the company closed today at Rs 93 apiece on the BSE, up 0.05 per cent from the previous close.
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