SP Tulsian, sptulsian.com is positive on JSW - Ispat deal and holds a positive view on JSW Steel.
Tulsian told CNBC-TV18, "Overall, I am quite positive on the deal. If you go by any parameters like enterprise value or even in terms of equity dilution or the kind of strength the Jindal Group or JSW is enjoying, I don't think there are any concerns with respect to valuations. In respect to debt, even if you take the debt scenario of about Rs 7,500 crore, they should be able to reschedule that at a lower rate and maybe the strength of the balance sheet will come to their rescue and they should be able to do it very fast."
He further added, "Maybe taking a call on a longer-term basis, ultimately, this is going to get merged with JSW steel. Maybe the present promoters - the Mittals are exiting with 26% which presently they are holding. That is a long-term call. I remember Southern Iron Steel having been acquired by JSW Steel maybe four-five years back though that was a small company. Again at that point of time, even though it was a precarious situation, they smartly turned it around. A similar situation is going to happen. I am quite positive on this deal and hold a positive view on JSW Steel."
