Home News Industry News Jindal Steel likely to sell stake in Oman unit to cut debt

    Jindal Steel likely to sell stake in Oman unit to cut debt

    Jindal Steel
    Image caption: Jindal Steel and Power Ltd Image source: jindalsteelpower.com www.jindalsteelpower.com

    Jindal Steel and Power Ltd (JSPL) is likely to sell a significant stake in its Oman unit, Jindal Shadeed Iron and Steel Llc, to meet debt repayment obligations.  The valuation was done by an independent adviser hired by JSPL’s foreign lenders in June to restructure part of the company’s loans.  Naveen Jindal-controlled JSPL acquired Shadeed Iron and Steel Co LLC from Al Ghaith Holdings PJSC of Abu Dhabi in 2010 through its subsidiary Jindal Steel & Power (Mauritius) Ltd for $464 million.  The company raised $400 million in debt financing from a consortium of international banks and paid the rest from internal accruals.  In April 2014, the company commissioned a 2 million tonnes per annum integrated steel plant in Sohar, Oman. The facility, is Oman’s first and largest steel melting shop.  JSPL claims to have invested over $800 million in this integrated facility so far.   JSPL’s consolidated gross debt stood at Rs46,816 crore at the end of March 2016. The firm reported a loss of Rs1,902 crore in 2015-16 against Rs1,278 crore loss in 2014 -15. Revenue fell 8% to Rs18,104.9 crore while interest expenses were at Rs3,280 crore, according to the company’s filings.

    Source: livemint.com


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