The country’s largest private steelmaker Jindal South West Ltd (JSW) on Tuesday said that Japanese steelmaker JFE will buy 14.99 per cent stake in it for over Rs 4,800 crore, helping it reduce its debt.
The company reported a 26.2 per cent growth in consolidated net profit in the April-June quarter — from Rs 234 crore in 2009-10 to Rs 295.4 crore in 2010-11. On a standalone basis, profit grew 3 per cent to Rs 350.3 crore.
The stake sale, which may happen in three tranches over the next 18 months, may give JSW a maximum of Rs 5,700 crore depending on its stock performance at the Bombay Stock Exchange.
‘Govt has MNC bias’
JSW Steel vice-chairman Sajjan Jindal on Tuesday said the government may have a bias towards multinational steel companies while alloting raw material linkages. JSW Steel, which is the largest investor in iron ore rich Karnataka has been on the look out for a captive iron ore mine for the last 15 years with little success so far.