Ispat Industries to be renamed as JSW Ispat Steel - Report

Wednesday, 19 Jan 2011

PTI reported that the Mittal brothers, Mr Promod and Mr Vinod Mittal, the promoter directors of Ispat Industries would continue on the board even after majority interest in the company goes to JSW Steel.

BL reported that Ispat Industries Ltd is set to be renamed as JSW Ispat Steel and become a joint venture between JSW Steel and Kolkata based Mittals.

Mr Vinod Mittal on the sidelines of EGM to seek shareholders approval for allotment of 45% stake in the company to JSW Steel said “Both Promod and I would continue on the board as non executive directors.”

Mr Mittal said the board strength has gone up to 15 with induction of JSW Steel vice CMD Mr Sajjan Jindal and joint MD & CFO Mr Seshagiri Rao and two other independent directors in the company.

He said "JSW has option to increase their strength on board and it can be recasted three months later.”

Mr Anil Sureka ED of IIL said that out of the fresh equity of INR 2,157 crore infusion, around INR 600 crore would be utilized to reduce the existing debt of INR 6,500 crore till September 2011 and rest INR 5,900 crore would be refinanced.

He added that “Another INR 600 crore would be utilized to meet financing of the ongoing projects and the rest around INR 950 crore would be meant for working capital.”

(Sourced from PTI and BL)