The management of Jindal Steel and Power Ltd has announced that it is planning to raise up to Rs 1,000 crore through qualified institutional placement route in February 2018. The management stated that the purpose of the QIP was to repay debt as well as clear dues relating to working capital and capacity expansion. The company is also planning to raise Rs 1,500-2,000 crore by listing its Oman subsidiary Jindal Shadeed on a foreign exchange.
We have always been a standard account it is just out of some technical issues of RBI because they have very strict guidelines few banks had become non-performing assets. No bank has lost a single rupee with JSPL and no bank will lose a single rupee with JSPL. Raw material prices have gone up and steel prices have also improved and there is a good demand for all our products. So we are very confident that going forward things are going to be much better.
The domestic capacity, he said, will reach 9 MT by March-end and Angul will reach its full capacity by May, India will be number 2 position in the world in steel making. I am sure other people will also increase their capacity. I feel by May, India will definitely be number 2. The company has a 2 MTPA integrated steel plant at Sohar Oman where it had recently commissioned a 1.5 MTPA Bar Mill.
JSPL has also launched Jindal Panther TMT Rebar brand in the middle east markets. The sales and production volumes for Jindal Shadeed stood at 0.43 MT for Q2FY18 which is a utilization rate of 81%. The management also stated that the production at the Oman plant is unlikely to face issues with production ramp up. This is due to the fact that the Oman govt has given the plant higher allocation of natural gas.