JSW Steel to Raise Rs 14,000 Cr, Amalgamate BMM Ispat

New Delhi, May 15 (PTI) JSW Steel on Thursday said its board has approved raising up to Rs 14,000 crore through the issuance of non-convertible debentures and equity shares.

The board has also approved the scheme of amalgamation of BMM Ispat with JSW Steel at an enterprise value of Rs 6,400 crore, the company said in a regulatory filing.

It said funds will be raised through the issuance of non-convertible debentures with warrants, which are convertible into or exchangeable with equity shares of the company of face value of Re 1 each (the equity shares) at a later date, for an amount not exceeding Rs 7,000 crore, inclusive of such premium as may be decided by the board.

Also, the company plans to issue equity shares and/or convertible securities (other than warrants) for an amount not exceeding Rs 7,000 crore, inclusive of such premium as may be decided by the board.


In a separate statement, JSW Steel said the board has considered and approved the "Scheme of Amalgamation pursuant to section 230-232 and other applicable provisions of the Companies Act, 2013, of BMM Ispat Ltd, a related party, with the company at an enterprise value of Rs 6,400 crore".

BMM Ispat Ltd (BMMIL) operates an integrated steel manufacturing facility of 1 MTPA capacity. BMMIL is located within 50 km of JSW Steel's Vijayanagar plant in Karnataka. Besides, BMMIL has a surplus expansion-ready land, which provides an opportunity to nearly double capacity in a significantly faster manner at a low specific investment cost.

The proposed amalgamation is also expected to strengthen the long products portfolio, thereby enhancing JSW Steel's overall product mix and market positioning.

The proposals related to fundraising and amalgamation are subject to regulatory and other approvals, the company said.