JSPL - An Alternate Deal Contour Can Draw Better Acceptance: ICICI Securities
Materials are broken down with heat in the sintering unit of the Jindal Steel & Power Ltd. plant. (Photographer: Udit Kulshrestha/Bloomberg)

JSPL - An Alternate Deal Contour Can Draw Better Acceptance: ICICI Securities

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.

ICICI Securities Report

Jindal Steel and Power Ltd. has announced sale of its 96.42% stake in Jindal Power Ltd. to a promoter entity Worldone.

The equity value (all-cash) for the offer is Rs 30.15 billion. Objectives are:

  1. Deleveraging the balance sheet, to prepare for next phase of steel capex, i.e. increasing Angul capacity from six million tonne per annum to 12mtpa; and

  2. Meet the environmental social governance objective of the company being in the top-10 lowest carbon-di-oxide emitting steel companies globally.

There are concerns that we could gather from our investor interaction on the implied enterprise value of the deal.

Click on the attachment to read the full report:

ICICI Securities JSPL Company Update.pdf

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