JSW Steel to raise up to USD 500 mm

MUMBAI: Following merger with Southern Iron and Steel Company (SISCOL), Sajjan Jindal-owned JSW Steel now plans to raise up to USD 500 million through a GDR issue in order to bring more liquidity to the company's stock.

"We are looking at secondary listing through a Global Depository Receipts (GDR) issue other than India in which we plan to raise USD 300-500 million. This will help us to expand the investors' base and bring more liquidity to the company's stock," JSW Steel's Vice Chairman and Managing Director Sajjan Jindal said here.
   
"This (raising through a GDR issue) is the best way we can do without diluting equity," Jindal said declining to give any time-frame for the listing.
   
Following SISCOL merger, at a swap ratio of 22:1, the promoters' stake in the merged would be around 45 per cent. Based in Salem in Tamil Nadu, SISCOL currently manufactures 0.3 million tonnes of specialised steel.
    
"Siscol will produce one million tonne of steel from January next year. There is a possibility to take it to two million tonnes," Jindal said.
    
In 2004, JSW had acquired government-owned SISCOL which produces round and long products for construction and engineering applications.
    
Currently undergoing capacity expansion at its Vijaynagar plant from around four million tonnes to 10 million tonnes, JSW Steel has also signed Memorandum of Agreement with the Governments of West Bengal and Jharkhand to put up two ten million tonnes greenfield plants in each state.