JSPL gains as company repays dues to lenders

NEW DELHI: Shares of Jindal Steel & Power advanced on Monday after the company Naveen Jindal flagship firm said it has repaid its outstanding interest dues to lenders, using a large part of the proceeds of the Rs 1,211 crore sale of two of its oxygen plants to Srei Equipment Finance last week.

JSPL, which had defaulted on interest payments, said it should soon come out of the Joint Lenders Forum (JLF).

Following the announcement, the stock gained 1.29 per cent to close the session at Rs 164.75 on BSE.

JSPL said it has paid off nearly Rs 650-crore due to banks as interest payment using the proceeds of its recent sale and lease-back deal with SREI. The company was earlier placed on an ‘under stress’ list, with the JLF comprising the 31lender banks putting the company under strict monitoring, ET reported.

“We will soon be out of the JLF. All our accounts are now standard and regularised. We look forward to investment-grade rating,” Naveen Jindal, chairman JSPL Group told ET in an exclusive interview on Sunday.