Directors of JSW Steel approve rights issue

On Friday, the board of directors of JSW Steel approved the issuance of equity shares by way of a rights issue to existing shareholders for an amount, which will not be exceeding Rs 5,000 crore.  

The process of issuing equity shares by way of rights issue will go forward subjected to statutory & regulatory approval while the record date for the purpose is yet to be fixed.  

Additionally, JSW Steel will also be issuing non-convertible debentures with warrants, which are convertible into or exchangeable with equity shares of the company of a face value of Rs 1 each at a later date, for an amount not exceeding Rs 7,000 crore. The raising of funds will take place through the way of qualified institutional placement (QIP).   

Previously on July 23, 2020, the company had obtained an approval from the shareholders for fundraising but JSW Steel did not act upon it and hence, a fresh approval from the shareholders will be taken to validate the resolution of the raising of funds.  

On Friday, the stock of the company closed at Rs 697.80, up by 0.50 per cent or Rs 3.50 per share. Its 52-week high and the 52-week low are Rs 773 and Rs 163.60 per share, respectively on BSE.