Naveen Jindal-owned Jindal Steel and Power Ltd (JSPL) has described as "baseless and false” rumours of the company defaulting on payments. “Investors are advised to treat such news as fake news," it said.
Reiterating that the company made payments before the due date, a senior JSPL official said none of its lenders planned to sell pledged shares.
"The business is going on as usual and normal and company is generating adequate cash," managing director (Designate), VR Sharma, said in a statement. "So much so, that the company has prepaid Rs 300 crore towards NCDs, earlier than its due date.”
No sale of shares was reported by any of the lenders and the promoters were looking to reduce the "pledge at the earliest", Sharma also said.
As on June 2019, 64.85 percent of the promoters’ share are pledged, which is an increase from 54.1 percent in the March quarter. Promoters hold 60.52 percent stake in the steelmaker.
The statement comes after the company's stock has fallen by 30 percent in last two weeks, and is at half of its level a year ago.
At the time of writing on August 8, JSPL's share was down 0.05 percent, at Rs 102.4, on the BSE. The Sensex was up 0.25 percent.
Reiterates guidance
JSPL said it was on track to deliver its “highest ever volumes this year and should be able to generate better returns for its stakeholders".
Earlier this year, the company said it will do sales of 6.5 million tons in this financial year, from 5.25 million tons a year earlier. It also plans to reduce its debt pile of nearly Rs 40,000 crore by Rs 8,000 crore this financial year.
The company shall be reporting its Q1FY20 results on August 14.
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