JSW Steel to raise US$1 Billion

JSW Steel Ltd has announced that the Board of Directors of the Company at its meeting held on May 28, 2009, inter alia, has decided to seek an enabling approval from the Members in the ensuing Annual General Meeting of the Company, for raising of additional long term resources to part finance the Company's Capex and / or for other General Corporate purposes including reducing the leverage, depending on market dynamics.

The company plans to issue Equity Shares and / or Securities convertible into Equity Shares to Qualified Institutional Buyers (QIB) in one or more tranches through a Qualified Institutional Placement (QIP), not exceeding US$ 1 Billion (United States Dollar One Billion only) or its Indian Rupee Equivalent in the aggregate.

The company plans an issue of Foreign Currency Convertible (FCCBs)/ Global Depository Receipts (GDRs) / American Depository Receipts (ADRs) / Warrants and / or otherwise, instrument convertible into Equity shares, optionally or otherwise, in one or more tranches, not exceeding US $ 1 Billion (united States Dollar One Billion only) in the aggregated, in the International Capital Market.

The total amount to be raised vide both of the above proposed issue would not in the aggregate exceed a sum of US $ 1 Billion (United States Dollars One Billion only) or its Indian Rupee Equivalent inclusive of such premium as may be determined by the Board.

The stock was trading at Rs.549.90, up by Rs.33.95 or 6.58%. The stock hit an intraday high of Rs.596 and low of Rs.510.

The total traded quantity was 2471157 compared to 2 week average of 726374.

Source : Equity Bulls

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