JSPL rises on plan to divest 1000 MW power unit to JSW energy

Jindal Steel Ltd. | Steel/Sponge Iron/Pig Iron | Metals & Mining | BSE: 532286 | NSE: JINDALSTEL

04 May 2016 Evaluate

JSPL is currently trading at Rs. 70.30, up by 1.30 points or 1.88% from its previous closing of Rs. 69.00 on the BSE.

The scrip opened at Rs. 70.00 and has touched a high and low of Rs. 71.45 and Rs. 70.00 respectively. So far 1,79,000 shares were traded on the counter.

The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 148.30 on 06-May-2015 and a 52 week low of Rs. 48.20 on 12-Feb-2016.

Last one week high and low of the scrip stood at Rs. 77.45 and Rs. 67.30 respectively. The current market cap of the company is Rs. 6,491.00 crore.

The promoters holding in the company stood at 61.89% while Institutions and Non-Institutions held 21.08% and 17.02% respectively.

Jindal Steel and Power (JSPL), as part of its monetization plans, has agreed to divest the 1000 MW 4(250x MW) unit of Jindal Power (JPL), located in Chhattisgarh in favour of JSW Energy. JSPL has been looking to generate cash flows from select divestments to be in much stronger position to meet all its liabilities and emerge as financially strong and sustainable company in 2016-2017.

The board has approved the divestment of 1000 MW Power unit of Jindal Power, located in Chhattisgarh, into a special purpose vehicle (SPV), for the purposes of transferring the same to JSW Energy through sale of the entire share capital and other securities of the aforesaid entity in terms of the share purchase agreement for an enterprise value of Rs 6,500 crore plus the value of net current assets as on the closing date. The valuation may vary based upon the achievement of PPAs as prescribed in the agreement subject to minimum of Rs 4,000 crore plus the value of net current assets as on the closing date.

The restructuring will entail that 1000 MW Power Plant owned by JPL is hived off into an separate purpose vehicle (SPV), being subsidiary of JSPL and creation of other SPVs amenable for monetization by way of divestments as well as achieve better synergy across the group. This would further ensure that the businesses of these entities are operated in the most efficient and cost effective manner, including by pooling of technical, distribution and marketing skills, creating optimal utilization of resources, better administration and cost reduction.

Jindal Steel Share Price

1051.60 21.15 (2.05%)

10-Jul-2026 16:59 View Price Chart

Peers

Company Name	CMP
Jindal Steel	1051.60
Lloyds Metals&Energy	1798.55
Jai Balaji Inds	66.44
Steel Exchange India	12.02
Rajputana Stainless	129.00
View more..

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