JSW Steel, the flagship company of Sajjan Jindal’s JSW Group, is close to buying a 45% equity stake in Ispat Industries, an ailing steel maker, for 2,157 crore. But the transaction is dependent on Ispat’s lenders, as the Pramod and Vinod Mittal-led company is carrying out a lender-led debt recast.
The institutions, including IFCI, IDBI, ICICI and SBI, which had collectively lent about 7,000 crore to the steel maker, own 11% in Ispat. This could raise institutional shareholding in Ispat to above 35%, bringing down promoter holding to 28% from about 40%. crackcrack
