Sajjan Jindal-led JSW Steel has raised ₹2,500 crore through qualified institutional placement on Tuesday. The instrument will carry an interest of 9 per cent for one year, said merchant banking sources.

The fund-raise is the last tranche for funding the ₹19,300-crore deal to acquire the stressed Bhushan Power and Steel even as the Supreme Court is yet to clear the last hurdle to close the resolution plan.

The company is expected to deposit the entire fund in an escrow account on March 25, sources said.

When contacted, a senior JSW Steel official declined to comment.

In a first of its kind deal, the Committee of Creditors of BPSL cleared the JSW Steel proposal to pay the entire bid amount to acquire the company even as the Supreme Court continue to hear the Enforcement Directorate right to attach the stressed asset as part of its investigation.

Lenders in favour

Overall, 97 per cent of the lenders have voted in favour of JSW Steel’s proposal to pay the money in advance. The acquisition will JSW Steel to take advantage of the current up trend in steel industry.

The Enforcement Directorate had issued a provisional order of attachment of BPSL’s assets valued at ₹4,025 crore in October 2019 and objected to the applicability of Section 32A of the Insolvency and Bankruptcy Code to the JSW-Bhushan deal.

The Section 32A of IBC provides immunity to the corporate debtor for the offence committed prior to commencement of Corporate Insolvency Resolution Process once the Resolution Plan has been approved by Adjudicating Authority. The amount paid by JSW Steel will be refunded in two months if the Supreme Court order goes against closure the deal. The payment will help banks shore up their balance sheet in the current fiscal.

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