JSPL plans to divest entire stake in Jindal Power; hits 52-week high

Jindal Steel & Power Limited (JSPL), an industrial powerhouse of the country, informed this morning about its divestment in Jindal Power Ltd, which is a material subsidiary of the company. The company has accepted a binding offer from Worldone Private Limited (acquirer) and has divested its 96.42 per cent stake in Jindal Power Limited (JPL).  

The equity value of this divested stake amounts to Rs 3,015 crore and includes 3,400 MW coal-fired power plants in the state of Chhattisgarh along with other non-core assets owned by JPL. The proceeds from this divestment will be used to fulfill JSPL’s strategic objective to reduce its debt and create a robust balance sheet.  

JSPL will now focus on its Indian steel business and significantly reduce its carbon footprint by almost half as part of its environmental, social & governance (ESG) objectives through this divestment.   

As per VR Sharma, Managing Director of JSPL, the company will be a key growth driver in the Indian steel industry in the future and will now focus on undertaking an expansion of its Angul steel plant from 6 MTPA to 12 MTPA. In his opinion, infrastructure spending in India is bound to grow exponentially and JSPL is fully-aligned with GoI’s vision of achieving 300 MTPA steel production by 2030. The company firmly believes in the Indian growth story and its potential to be an engine of global growth.  

At 12.28 pm, the share price of Jindal Steel & Power Limited was trading at Rs 449.10, which was a rise of 1.55 per cent over its previous day’s closing price of Rs 442.30. Besides, it has a 52-week high and a 52-week low of Rs 455.95 and Rs 79.70, respectively on BSE.