Jindal Steel and Power Ltd (JSPL) announced on Monday that it has made a Rs 2,462 crore prepayment to its term lenders in order to become debt-free. JSPL recently announced the sale of its 3,400 megawatts (MW) thermal power company to alleviate debt and reduce carbon emissions by nearly half.
The share price of Jindal Steel & Power (JSPL) hit a 52-week high of Rs 501.60 intraday on May 10 after the company made a prepayment to its term lenders.
Jindal Steel and Power Ltd (JSPL), led by industrialist Naveen Jindal, is in the process of significantly reducing its debt while embarking on a new capital expenditure cycle. In addition to the loan repayments of Rs 20,000 crore in the last three years until December 2020, it has made a prepayment of Rs 2,462 crore to its term lenders.
"The significant debt reduction is part of our long-term financial strategy to create a strong balance sheet. In the coming quarters, we intend to further strengthen our balance sheet and become net debt-free in the near future," said V R Sharma, MD, JSPL.
On 12/05/2021, the company's board of directors will meet to consider and authorize the company's audited financial results, both on a standalone and consolidated basis, for the fourth quarter and year ended March 31, 2021, of the Financial Year 2020-21.
Jindal Steel & Power was trading at Rs 492.25 on the NSE at 2.44 p.m., up Rs 12.35, or 2.57 percent.