The country’s second-largest steel maker JSW Steel on Thursday denied any immediate plans of the promoters to offload any stake in the company. It, however, admitted that the approval of an enabling resolution to raise resources up to $1 billion through instruments like QIP (qualified institutional placement) taken during a board meeting on May 28 could see promoters’ stake go down in the company in the ensuing quarters this fiscal.
“We do want to bring the debt equity ratio down but a decision for a QIP would only be taken only after the company’s annual general meeting on July 7,” the company spokesperson said.
Shares of the company, which more than doubled this year, fell as much as 9.3 per cent to Rs 574 on the BSE.
“The board of directors of the company at their meeting held on May 28 subject to the approval of shareholders with an intention primarily to deleverage the company,” the company said in a statement. “In case the company decides to go ahead with the issue subsequent to the approval of shareholders, promoters’ holding is likely to come down depending upon the quantum, pricing and timing of the issue.”
Meanwhile, a company official told Hindustan Times that “any dilution of stake is not going to happen in the absolute near term.”