Millennium Post

JSW seeks 60% rise in borrowing limit to Rs 40K cr

Expecting an increase in funding requirement for its ambitious expansion plans, JSW Steel has sought shareholders' approval to enhance the borrowing limit by up to 60 per cent, at Rs 40,000 crore.

The Sajjan Jindal-led steel-maker, which currently has 14 million tonne per annum (mtpa) capacity, intends to raise the limit for various capex programmes including acquisition, JSW Steel said in its notice for annual meeting with shareholders, scheduled to be held on 30 July.
The company has a borrowing limit of Rs 25,000 crore. On the other hand, it had Rs 21,346 crore consolidated debt at the end of last fiscal. It excludes Rs 6,500 crore debt of JSW Ispat, which was merged with the firm few weeks back.

The aggregated debt coupled with the company's proposed expansion and acquisition plans is expected to have propelled the firm to seek shareholders nod for a Rs 15,000 crore hike in the borrowing limit.

The shareholders had in 2010 approved to increase the borrowing limit of JSW to up to Rs 25,000 crore.
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