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JSW Group repays Rs 640 crore debt to release pledged shares

As of the company’s 2019 annual report, JSW Steel has a net debt of Rs 42, 341 crores and JSW Energy has a net debt of Rs 2,879 crores.

, ET Bureau|
Last Updated: Mar 30, 2020, 05.40 PM IST
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Mumbai: Sajjan Jindal led JSW Group on Monday said it has released Rs 409.1 crores worth of pledged promoter shares of JSW Steel and JSW Energy by repaying loans worth Rs 640 crores taken by the promoter firms.

“JSW's Sajjan Jindal Released 1.09 cr pledged JSW Steel shares worth of Rs 165 crore whereas 5.48cr pledged shares worth of Rs 243 crore of JSW Energy,” said the company.

As of the company’s 2019 annual report, JSW Steel has a net debt of Rs 42, 341 crores and JSW Energy has a net debt of Rs 2,879 crores.

Promoters pledging shares to banks in order to manage existing debt, is a common practise in India.

The latest reduction in promoter pledged shares is followed by similar debt repayment In September, where promoters of JSW Steel, JSW Techno Project Management, Sahyog Holdings and Vividh Finvest had had repaid Rs 1,150 crores to release of 5.07 crore of its pledged shares.

In the month of October, four promoter entities of JSW Steel, JSW Holdings Ltd, JSW Techno Projects Management Ltd, Sahyog Holdings Pvt Ltd and Vividh Finvest Pvt Ltd—repaid the debt and got their pledged shares released.

In case of JSW Energy, Indusglobe Multiventures Pvt Ltd and JSW Investments Pvt Ltd got their pledged shares released in October.

The company while announcing Q3 FY20 results said that its net debt to equity ratio stood at 1.35 times at the end of December quarter compared with 1.36 times in the previous quarter. Net debt to Ebitda jumped to 3.71 times against 3.23 times in the September quarter.

Recently, the company has also announced contributing Rs 100 crores to the prime minister’s citizen assistance and relief in emergency situations (PM-CARES) fund in the light of the ongoing Coronavirus outbreak. The company has also said that it will convert some of its facilities into isolation wards, limiting the stress on community hospitals.

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