Jindal Steel and Private Limited (JSPL) announced it has accepted a binding offer from Worldone Private Limited and will divest 96.42 per cent of its stake in subsidiary Jindal Power Limited (JPL) to reduce debt and carbon footprint by almost half.
The company said the equity value is an all-cash offer of Rs 3,015 crore for 96.42 per cent stake in JPL including 3,400 MW coal-fired power plants in Chhattisgarh and other non-core assets owned by JPL.
The firm said the divestment is in line with JSPL’s strategic objective to continuously reduce its debt and carbon emissions and focus on its India steel business. The divestment is subject to approvals including from shareholders of JSPL, lenders of JPL and JSPL, and statutory sanctions.
“This divestment is in line with our ESG objectives to be amongst the top 10 lowest Co2 emitting steel companies of the world. JSPL will be a key growth driver in the Indian steel industry and will now focus on undertaking expansion of its Angul steel plant 6 MTPA to 12 MTPA,” V R Sharma, MD, JSPL said.
He said infrastructure spending in India is bound to grow exponentially and JSPL is fully aligned with the government’s vision of achieving 300 MTPA steel production by 2030.