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Shares of Jindal Stainless today surged over 11 per cent after the company got the board approval to restructure its businesses, including demerging a subsidiary and listing it on domestic bourses, to cut debt.
Jindal Stainless’ scrip jumped 11.18 per cent to Rs 43.25 on the BSE. On the NSE, it gained 11.15 per cent to Rs 43.35.
Jindal Stainless had yesterday got the board approval to restructure its businesses that includes demerging a subsidiary and listing it on domestic bourses, a move aimed at boosting profitability and paring debt.
Based on the recommendation of its audit committee, the composite scheme of arrangement among Jindal Stainless and its three wholly-owned subsidiaries has been approved by the company board, it had said in a BSE filing.
The objective of the scheme, which is subject to approval of the shareholders, was unlocking value for shareholders to increase profitability, reduction of debt and improvement of serviceability of the debt, which now stands in excess of Rs 8,500 crore. This will come down to below Rs 5,000 crore post-restructuring, a company source had said.
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