Jindal Stainless stock up over 11% on business rejig plans

MUMBAI: Shares of Jindal Stainless today surged over 11 per cent after the company got board approval to restructure its businesses, including demerging a subsidiary and listing it on domestic bourses, to cut debt.

Jindal Stainless' scrip jumped 11.18 per cent to Rs 43.25 at the BSE.

On the NSE, it gained 11.15 per cent to Rs 43.35. Jindal Stainless yesterday got board approval to restructure its businesses that includes demerging a subsidiary and listing it on domestic bourses, a move aimed at boosting profitability and paring debt.

Based on the recommendation of its audit committee, the composite scheme of arrangement amongst Jindal Stainless and its three wholly-owned subsidiaries has been approved by the company Board, it had said in a BSE filing.

The objective of the scheme, which is subject to approval of the shareholders, was unlocking value for shareholders to increase profitability, reduction of the debt and improvement of the serviceability of the debt, which now stands in excess of Rs 8,500 crore. This will come down to below Rs 5,000 crore post-restructuring, a company source had said.