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Jindal Stainless to issue Rs 200.54 crore worth shares to promoters on preferential basis

27 Dec 2012 Evaluate

Jindal Stainless, in order to meet the conditions of a reworked corporate debt restructuring (CDR) scheme, will issue shares amounting to the worth of Rs 200.54 crore to its promoters on preferential basis. The company, whose reworked CDR scheme was approved in September, will issue 2.71 crore shares of face value of Rs 2 each to its promoters at a price of Rs 74 per share, aggregating to the sum of Rs 200.54 crore. Further, the shares will be issued on or before June 30, 2013, in two equal tranches.

The preferential share offer is part of the requirement mentioned in the letter of approval dated September 18, 2012, issued by the CDR cell while giving a nod to reworked corporate debt restructuring scheme of the company. Although the company’s board had approved the proposal on December 24, its shareholders’ are yet to approve the issue of preference shares to the promoters. The Ratan Jindal-led company has debt of over Rs 9,000 crore and has been admitted the CDR programme for the last many months.

Back in 2011-12, the company after being hit hard by a 33 per cent increase in interest costs applied for rescheduling of its debt payments before the CDR cell. The approval was required in order to maintain cash flow for its operations, particularly till its new 8-lakh-tonne Odisha capacity begins production at optimum level.

Jindal Stainless manufactures stainless steel slabs, blooms, hot rolled and cold rolled coils, 60% of which are exported worldwide. It has a stainless steel making facility at Hissar and a ferro alloy plant at Vizag.

Jindal Stainless Share Price

787.90 -1.55 (-0.20%)
17-Apr-2026 16:59 View Price Chart
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