India’s largest private steelmaker JSW Steel Ltd led by Sajjan Jindal is looking to raise capital through a qualified institutional placement (QIP) route, said three people directly familiar with the matter.
“JSW Steel has initiated talks with two investment banks to understand the market for a QIP program. The company is initially looking to raise anywhere between Rs 2500-3000 crore through this share sale program” said the first person mentioned above.
This would be the first time in over a decade that the steel maker will hit the markets to raise capital through a QIP route.JSW Steel is yet to respond to an ET NOW query.
The company recently notified the exchanges that on June 29, during its annual general meeting it is seeking shareholder approval to raise nearly Rs 8000 crore through various modes. Of the Rs 8000 crore, it is seeking to raise Rs 4000 crore through NCDs with a convertible option and rest Rs 4000 crore through various equity sale routes.
Although the company has been taking resolution for last few years to raise mega bucks, it hasn’t ever exercised the same to raise capital through an equity sale route to fund its war chest.
“The management is trying to understand if they want to raise capital through share sale and the investor appetite at the moment in the market. The finalizing of bankers and other modalities will happen later once they have firmed up the plan,” said the second person mentioned above.
The steel firm which has been scouting for assets in the country does not see any opportunity to buy assets in India in the distressed segment and plans to start work on greenfield projects in Jharkhand and Odisha.
