Naveen Jindal-led JSPL - Jindal Steel and Power today said that it has defaulted on payment of interest on non-convertible debentures or NCDs, due on 30th September, 2016 on account of the cash flow mismatches, the debt-laden firm said in a regulatory filing. It added that he NCDs carried a coupon rate of 9.8 per cent and Axis Trustee Services was the trustee.
When contacted by the media, a JSPL spokesperson said that the non-payment of interest on NCDs had been disclosed as per regulatory norms. The said non-payment was due to short-term cash flow mismatches and would be paid in due course. Reacting to the development, Jindal Steel share price yesterday declined 5.27 per cent to Rs.79.05 apiece in the afternoon trade on the BSE, while they fell by 5.33 per cent to Rs.79.05 per share on the NSE.
In the last few months, the firm had divested some of its assets to pare debt. The company has a net debt of around Rs.46,000 cr. Earlier this week, Jindal Steel and Power had said that it would sell its 24-MW wind power plant in Satara, Maharashtra to an ancillary of India infrastructure Fund II for an unrevealed amount.
In the month of May this year, the company had inked an agreement with JSW Energy, a company led by Naveen’s brother Sajjan Jindal, to sell its 1,000-MW power plant, located at Raigarh, Chhattisgarh. In accordance with the deal, JSW will pay at least Rs.4,000 cr, excluding net current assets, and an additional Rs.2,500 cr if JSPL’s power plant secures a long term power purchase agreement (PPA).
In the same manner, in the month of March, JSPL had announced that its ancillary Jindal Power had entered into a definitive agreement to divest 4.12 per cent stake in the Indian Energy Exchange for an unrevealed amount by month-end.
At 11:20 am, Jindal Steel share price was trading 0.19 per cent higher at Rs.79.30 on the NSE today. To know more about the stock, visit Jindal Steel share price history.
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