Jindal Steel & Power, a steel maker and power generator, has raised $475 million (about Rs. 2,137 crore) through the takeout financing route, to part finance expansion plans overseas, making it one of the largest such transactions by an Indian company. The Delhi-based company, which is part of the OP Jindal Group, has raised the loan at 225 basis points over the Libor, for a tenor of five years, with 10 large banks participating in the transaction. The banks include Standard Chartered, DBS, Citibank, Bank of Tokyo Mitsubishi, Mizuho, Barclays, RBS, ANZ, Credit Agricole and JP Morgan.
Jindal Steel acquired Shadeed Iron and Steel in May 2010 from Abu-Dhabi’s Al Ghaith Holdings for $464 million and had also indicated that it would invest around $500 million to expand Shadeed’s facilities. The capacity will be expanded from 1.5 million tonne to about 5 million tonnes by 2015-16. The main reason for acquiring Shadeed was easy availability of gas. The acquisition is a key move in the international strategic expansion for Jindal Steel. Currently, Jindal Steel has an annual capacity of 3 mn tonnes in Chhattisgarh, which is proposed to be doubled at about Rs. 10,000 crore. The company is also investing an estimated Rs. 44,000 crore on two new plants in Orissa and Jharkhand.crackcrack
| Company Name | CMP |
|---|---|
| Jindal Steel | 1269.50 |
| Lloyds Metals&Energy | 1622.70 |
| Jai Balaji Inds | 72.59 |
| Steel Exchange India | 8.96 |
| Rajputana Stainless | 125.90 |
| View more.. | |
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