Sparks fly as molten steel is poured from a ladle at an arc furnace in the steel melting shop of the JSPL plant in Raigarh, Chhattisgargh, India. (Photographer: Udit Kulshrestha/Bloomberg)

JSPL Sets QIP Floor Price At Rs 227

Jindal Steel & Power Ltd. is looking to raise capital to pare debt after it approved opening its qualified institutional placement today.

The floor price for the offer has been set at Rs 227.15 per share, the company said in an exchange filing. It may also offer a discount up to 5 percent on the floor price. The company did not disclose the number of shares up for sale in its filing.

Debt-laden JSPL, promoted by Naveen Jindal, is looking to raise upto $200 million or close to Rs 1,250 crore, BloombergQuint had reported earlier. It aims to use most of the proceeds to pare debt, two people close to the development had said on the condition of anonymity. JSPL’s total debt, according to data complied by Bloomberg, stood at Rs 23,689 crore, as on Dec. 31, 2017.

The share placement is intended to raise over Rs 1,000 crore, but the quantum of fund raising depends on the demand and response from institutional investors, said one of the sources quoted above.