JSPL promoters to repay Rs350 cr loans for release of 10 cr shares, stock up 15%
NEW DELHI: Promoters of Jindal Steeel & Power Ltd (JSPL) are repaying ₹350 crore of loans to ensure release of 10 crore shares of the company from the likes of L&T Financial Services and Franklin Templeton Investments, a source told Mint. Most of the loans are from non-banking finance companies. 10 crore shares amount to almost 10% of the company’s equity of 1.02 billion shares.
JSPL share is currently trading at Rs72.65 on the BSE, up 15% from Friday’s close. The promoter group, led by Naveen Jindal, holds 60.4% stake in the steel and power company.
The JSPL stock has shaved off 65% from its 52-week high of Rs202.40 even as the broader benchmark index, the BSE Sensex, has lost 40% from its own peak. Concerns over high proportion of pledged shares by the promoters and fear of recession have weighed on the stock.
