Jindal Steel and Power (JSPL) on Tuesday said its board has approved the divestment of its entire equity interest in Jindal Power to Worldone, a promoter group company, for Rs 3,015 crore as part of its strategic plan to pare debt, reduce emissions and focus on its domestic steel business and significantly reduce its carbon footprint by almost half.
The JSPL stock touched a 52-week high of Rs 455.95, rising 3 per cent in the morning trade on April 27 after it divested its majority stake in a subsidiary.
“The equity value is an all-cash offer of Rs 3,015 crore for 96.42 per cent stake in JPL, including 3,400 MW Coal fired power plants in Chhattisgarh and other non-core assets owned by JPL,” the company said in a release.
V.R. Sharma, MD of JSPL said, “This divestment is in line with our objectives to be amongst the top 10 lowest Co2 emitting steel companies of the world.
“It is also a step towards our vision to reduce debt substantially and create a robust balance sheet for our investors and stakeholders. JSPL will now focus on undertaking expansion of its Angul steel plan to significantly reduce the JSPL carbon footprint by almost 50 per cent.”
JSPL said Worldone was selected by way of an elaborate bidding process run by an independent third-party merchant banker, Grant Thornton Advisory, wherein the acquirer submitted the highest binding bid on acceptable terms and conditions.
