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Jindal Stainless Ltd (JSL) has completed its exit from the Corporate Debt Restructuring (CDR) framework. The exit is with effect from March 31, 2019, and JSL has received a letter from the consortium of CDR lenders to mark the completion of the exercise, said a company statement.
“Pursuant to this, existing CDR lenders have realised the full recompense of about ₹275 crore in cash, which will add to their income in the current fiscal itself. Additionally, JSL has fully redeemed the outstanding optionally convertible redeemable preference shares (OCRPS) which were issued to the lenders in June 2017, and has paid around ₹558 crore, taking the aggregate realisation of lenders to around ₹833 crore,” the statement said.
Earlier, the promoter group entity infused some equity and, subsequently, JSL issued non-convertible debentures (NCDs) worth ₹400 crore to Kotak Special Situations Fund (KSSF). These funds assisted JSL in redeeming the OCRPS.
KSSF has also acquired an approximately 5 per cent stake in JSL through the secondary market, which demonstrates increased investors’ confidence in the company’s operations and growth outlook, the statement added.
Commenting on the development, JSL’s Managing Director Abhyuday Jindal said: “The exit from CDR marks a significant step forward for JSL. This underlines the improvement in JSL’s liquidity profile and profitability. The exit will not only provide financial and operational flexibility to our business, but also pave the way for a new growth phase.”
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