Sajjan, Naveen, PRS Jindal to bail out Ratan Jindal’s JSL

O.P. Jindal Group is in a huddle to save the crisis-hit JSL, sources with direct knowledge share that Sajjan Jindal, Naveen Jindal and PRS Jindal are coming together to save their brother Ratan Jindal’s company, JSL. Three brothers will be infusing funds into the newly formed JSL Group post the demerger and these investments will be made in their personal capacity via their holding companies.

Demerger is just the beginning of the mega restructuring at JSL. As part of the larger plan, Sajjan Jindal and Naveen Jindal will infuse cash into Jindal United Steel Ltd to together own a majority stake in the arm. This newly created unit post the demerger will consist of the hot strip steel unit at Odisha. Prithvi Raj Jindal who owns Jindal Saw will be acquiring a majority stake in Jindal Coke Ltd via fresh issuance of shares.

This will leave the new avatar of JSL with a minority stake in Jindal United Steel & Jindal Coke. Ratan Jindal will head the third company carved out by way of demerger, Jindal Stainless (Hisar) Ltd.

JSL aims to reduce the large debt burden of Rs 9000 cr by Rs 5000 cr and sources suggest that the group is targeting to complete the entire recast by April this year.

Jindal brothers had not offered any comment to an ET Now query till the time this article was published.