Moneycontrol
Mar 14, 2016 10:08 PM IST | Source: PTI

Jindal Power to sell 4.12% stake in IEX by March-end

Jindal Steel and Power (JSPL) today said its subsidiary Jindal Power has entered into a definitive agreement to divest 4.12 percent stake in Indian Energy Exchange for an undisclosed amount by month-end.

Jindal Power to sell 4.12% stake in IEX by March-end

Jindal Steel and Power (JSPL) today said its subsidiary Jindal Power has entered into a definitive agreement to divest 4.12 percent stake in Indian Energy Exchange for an undisclosed amount by month-end.


The company in a release said it is expected "to realise the consideration within current financial year".


JSPL financials have been adversely impacted due to cancellation of coal blocks and payment of additional levy on coal of more than Rs 3,300 crore in FY2014-15 & 2015-16 as a result of a Supreme Court order, the release said.


Meanwhile, in a filing to the BSE, JSPL said that "as part of the monetisation plan already advised", Jindal Power has entered into a definitive agreement to divest 4.12 holding in India Energy Exchange "at an undisclosed amount".


Steel sector globally has been impacted due to reduced demand from China and its over capacity. Steel industry in India has been impacted in terms low sales realisation due to cheap imports affecting financial results of Indian steel companies over the last 4 quarters, it added.


"JSPL will be in a better position to generate higher cash flows as compared to last four quarters. Our efforts in bringing cash into company through divestment of assets and strategic collaborations through JVs, as previously advised will add to our cash flows, and also result in reduction in Bank borrowings," the company said.


"We have used these difficult times as an opportunity, under the dynamic leadership of our management, to drastically cut costs to become extremely efficient and nimble footed," it added.

Shares of JSPL today dropped 4.86 percent to close at Rs 59.75 on the BSE.

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