JSW Steel revives London listing plans : Sources

Sources say that the Jindal Group unit is planning to consolidate its international businesses under one umbrella, and will list its operations on the LSE post the consolidation.

Currently, JSW Steel has pipe and plate operations in the US and iron ore operations in Chile, South America.

The goal of the company is to expand its international network, both organically and inorganically via acquisitions.

Currently, 90% of JSW Steel’s business comes from domestic operations, which are undergoing a turbulent phase. Slowing economic growth, high cost of funds and a severe shortage of fuel has crippled corporate India, and JSW Steel has not been spared. The depreciation of the rupee has also had a huge impact on the profits on the company.

For the quarter ended June 2012, JSW consolidated net profit fell significantly to Rs 50 crore from Rs 485 crore in the year ago period. The company held forex losses of around Rs 592 crore responsible for the decline in profits.

Compared to this, the international operations of the business recently turned EBITDA positive.

JSW is yet to appoint bankers to formulate the valuation for the listing process. And sources say the timeline of the listing will be subjective to market conditions.

CNBC-TV18 reached out to the management, however, officials were unavailable for comment.