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JSW to raise a billion dollars through QIP

29 May 2009 Evaluate

After realty majors, it's the turn of steelmakers to board the qualified institutional placement (QIP) bandwagon. JSW Steel on Thursday announced plans to raise $1 billion through a QIP. It will use the money to reduce debt and part-finance expansion plans at Vijayanagar. The company aims to cut its debt-equity ratio to 1.5:1 from 1.79:1.

 

At Thursday's Rs 550 per share closing price, the steelmaker will have to issue 8.67 crore fresh shares to subscribers to raise $1 billion. Following the fresh issue, the share base will swell from the current 18.7 crore to 27.37 crore, leading to a 46% equity dilution. The promoter holding is expected to fall to 31% from 45.02% as on March 31.

 

The steelmaker is expected to generate enough cash flows to meet its debt servicing obligations in FY10. Further, with this QIP issue, it will be in a healthier position.

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JSW Steel Share Price

1300.55 -11.55 (-0.88%)
04-Jun-2026 16:59 View Price Chart
Peers
Company Name CMP
Tata Steel 210.55
JSW Steel 1300.55
SAIL 197.00
Jindal Stainless 696.20
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