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Sajjan Jindal, promoter of JSW Group, has released pledged shares of JSW Steel and JSW Energy worth ₹200 crore. He has so far repaid ₹3,000 crore of loans in four tranches.
In his fifth tranche, Vividh Finvest, a promoter group company, on Thursday repaid loan to release 72 lakh pledged shares of JSW Steel, accounting for 0.30 per cent of the paid-up capital, and JSW Investments repaid debt to release 4.03 crore shares of JSW Energy, which accounts for 2.45 per cent of paid-up capital.
Jindal is repaying loan for the second time in last fortnight. Earlier this month, he repaid ₹342-crore debt to release 1.26 crore of pledged shares of JSW Steel and 6.98 crore pledged shares of JSW Energy.
In October, Jindal, repaid ₹1,200 crore of loan raised against pledging of JSW Steel and JSW Energy shares. In September, he paid ₹1,150-crore loan to release pledged shares of JSW Steel.
Shares of JSW Steel and JSW Energy were beaten down due to debt concern. When share prices fall sharply, promoters who have raised money through pledged shares have to bring in more money to compensate the fall in value of pledged shares or cut their outstanding loan by pre-paying debt.
Despite the benchmark index Sensex hitting a new high, shares of JSW Steel has been languishing for long. They fell from a 52-week high of ₹354 last November to 52-week low of ₹202 this August. The stock was trading at ₹247, down 0.60 per cent on Thursday.
Similarly, JSW Energy shares have fallen from 52-week high of ₹80 logged last November to 52-week low of ₹58. These shares are traded down by 0.49 per cent at ₹71.30 on Thursday.
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