The company is also looking to sell non-core assets worth nearly Rs 3,000 crore to deleverage its balance sheet, says Ravi Uppal, MD & CEO of Jindal Steel and Power (JSPL).
There will be no change in the debt-to-equity ratio of JK Tyre post the acquisition and it stands at 1:1.8, says Raghupati Singhania, Chairman, JK Tyre and Industries.
In an interview with CNBC-TV18, Kishore Babu, CMD of Power Mech Projects said a part of funds raised will be utilised as working capital and to repay long-term loans.
Investors can employ a number of tools to check the health of a company and opt out of financial trouble when they realize companies are piling up high debt, says Nirmal Bang research report.