JSPL up over 1% on getting long term linkage from Coal India

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Shares of Jindal Steel and Power (JSPL) rose over a percent intraday on Monday after the company secured a long term linkage from Coal India (CIL). “The company has secured long term coal linkage of a total quantity of 0.5 million tonnes per annum for the next 5 years in the recently-concluded coal linkage auction under sponge iron sub-sector, conducted by Coal India. This sourcing of coal will help the company to secure fuel requirements and smooth operations of the company’s sponge iron units," it said in a notification to exchanges. With this addition, its total linkage capacity now stands at 1.68 million tonnes per annum, the notification added. On the financial front, better results, improving EBITDA combined with a blast furnace starting production will help it significantly reduce debt, chairman Naveen Jindal told CNBC-TV18 in an interview last week. According to him, the doubling of capacity will result in a significant reduction of cost of debt. The cost of debt will spread across 6 million tonnes instead of 4 million tonnes at present, he added.Currently, JSPL’s debt stands at Rs 25,000 crore with international business contributing Rs 12,000 crore.Meanwhile, on the company’s plan to divest stake, Jindal said though Japanese investors are keen on investing, he said the company is not desperate for funds, especially at the cost of valuation. He however was quick to add it is open to investments but only on their terms.The stock has risen a whopping 20 percent in the past one month. At 09:46 hrs Jindal Steel & Power was quoting at Rs 80.00, up Rs 0.60, or 0.76 percent, on the BSE. It touched an intraday high of Rs 80.35 and an intraday low of Rs 79.10.