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    JSW Steel raises Rs 2,000 crore from LIC

    Synopsis

    The ten-year papers will bear a face value of Rs 10,00,000 and hold a coupon rate of 8.79 per cent, the company said.

    ET Bureau
    JSW Steel has raised Rs 2,000 crore via issuance of NCDs from Life Insurance Corporation (LIC) to meet long term working capital requirements, refinancing some high cost debt and to fund an ongoing capital expenditure program, the company announced via a notification on the BSE on Friday.

    This is the third fund raise by the 18 million tonne steelmaker this year after it raised a total of $900 million (Rs 6,410 crore) this year, first in April and then more recently in September , through dollar bonds.

    The ten-year papers will bear a face value of Rs 10,00,000 and hold a coupon rate of 8.79 per cent, the company said.

    JSW Steel wants to take its capacity to 40-45 million tonne by 2025 and is in the midst of an elaborate expansion program that includes both increasing capacities at its existing plants in Vijayanagar and Dolvi, as well as acquiring plants primarily through the company’s bankruptcy law and then integrating them into itself.

    It has a target of increasing capacity at its Dolvi plant from 5 million tonne to 10 million tonne by March next year.

    Also , the company has made an offer of Rs 19,700 crore for the 3.5 million tonne Bhushan Power of Steel under the IBC. The sale has for now been stayed by the companies appellate tribunal due to investigations going on by the Enforcement Directorate against its former promoter Sanjay Singhal.

    JSW Steel’s promoters have also been releasing pledged shares in recent days and have repaid loans worth Rs 2,350 crore through release of shares. Net debt at the company is around Rs 45,000 crore.

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