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Thursday, February 23, 2012

JFE will not up hike stake in JSW Steel - Mr Seshagiri Rao

Thursday, 23 Feb 2012

CNBC-TV18 reported that Mr Seshagiri Rao the joint MD and group CFO of JSW Steel has told that there is no plan today that JFE will increase their stake in JSW beyond 15%.

During an interview with CNBC TV18, while answering to question “Debt levels still remain quite high and JFE Steel a couple of weeks back raised some stake in your company. Now that they have the headway to go all the way up to 25%, is that an option that you may consider in order to bring in higher participation from them and perhaps more cash as well to de-stress the balance sheet”, Mr Rao said “Today, the balance sheet of JSW is not stressed at all. If we look at the overall consolidated debt as on December 31, it was 1.08:1. This is taking into account the FCCBs which we raised as debt only. So balance sheet wise we are quite okay.”

He added “We have 11 million tonne installed and an operating capacity as part of JSW. We don't need any additional equity to come into the company. As per the current agreement with JFE, their overall equity holding is restricted to 15%. They have recently enhanced only to reach the 15% threshold. Otherwise, there is no plan today that JFE will increase their stake in JSW beyond 15%.”

(sourced moneycontrol.com)

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