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Jindal Steel Stock Edges Lower After Divestment Announcement


Jindal Steel And Power To Divest Coal-Fired Power Business, Stock Edges Lower

Share price of Jindal Steel and Power Limited edged marginally lower on Wednesday, April 28, a day after the company’s board approved the divestment of its 96.4 per cent stake in subsidiary Jindal Power for an in-all cash offer of Rs 3,015 crore to Worldone Private Limited. On Wednesday, Jindal Steel and Power opened on the BSE at Rs 454.40, touching an intra day high of Rs 454.40, and an intra day low of Rs 436.05, in the trading session so far. According to a regulatory filing by the company to the BSE, the acquirer – Worldone Private Limited is owned by Jindal Steel and Power’s promoter group.

According to the statement released by the company, as part of the deal, the equity value is an all-cash offer of Rs. 3,015 crores for a 96.42 per cent stake in Jindal Power Limited. It included 3,400 MW coal-fired power plants in Chhattisgarh and other non-core assets owned by Jindal Power. The board of the company approved the divestment of its coal-fired power business.

Meanwhile, on the NSE, Jindal Steel and Power opened at Rs 453.80, touching an intra day high of Rs 453.95 and an intra day low of Rs 436.05, in the session so far. It was last trading 0.89 per cent lower at Rs 445.90 on the NSE.

Jindal Steel and Power was last trading 0.91 per cent lower at Rs 445.70 on the BSE.

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