OPJ Trading Pvt. Ltd, the main promoter entity of Naveen Jindal’s Jindal Steel and Power Ltd (JSPL) has raised around ₹180 crore in fresh debt from Centrum Credit Opportunities Fund, said a senior executive of the fund.
OPJ Trading owns a 18.4% stake in JSPL.
“OPJ Trading is raising around ₹180 crore primarily to repay existing debt at this entity. The transaction has been originated, structured and funded by us. We have funded the first tranche of around ₹35 crore through our Centrum Credit Opportunities Fund,” said Rakshat Kapoor, fund manager and chief investment officer of CCOF.
Mint reported in October that Centrum Credit Opportunities Fund has raised ₹155 crore for the first close of its maiden structured credit fund. It is targeting to raise a total of ₹500 crore, along with a greenshoe option to raise another ₹250 crore.
According to Kapoor, Centrum Credit Opportunities Fund’s debt financing to JSPL promoters comes on the back of the group’s strong operating performance, especially in the steel business.
“JSPL’s domestic steel business has shown strong performance in the last few quarters. Their performance of the domestic steel business has improved over the last few years with increasing share of production in value added steel products used in railways, shipbuilding, defence, etc.. JSPL’s India businesses (steel and power) generate around ₹7,000-7,500 crore of Ebitda, with a gross debt of over ₹25,000 crore,” said Kapoor.
Further, most brokerages are positive on JSPL group, he added.
The group has also actively worked on deleveraging its balance sheet both at the operating company and at promoter level in the last 2-3 years.
Source: Mint