JSL refutes media reports on sale of 56.17% stake to SBICAP

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Biznextindia:  Jindal Stainless Limited (JSL), India’s top stainless steel maker has refuted media reports that SBICAP trustee Company has acquired 56.17 per cent stake in the company.

In a stock market filing, Ratan Jindal promoted company has said that the promoters have not sold any of their shareholding in the Company and continue to hold their controlling stake in it.  Rather, the shareholders of JSL recently approved inter-alia allotment of convertible equity warrants to one of the promoter group entities, which in turn will further increase promoters’ stake in JSL.

“The promoters of JSL have not sold any of their shareholding in the Company and continue to hold their controlling stake in the Company. The creation of present security in favour of SBICAP is only an extension of pari-passu pledge and does not in any way results in the acquisition of stake in the JSL. The information surfacing acquisition of stake by SBICAP is therefore factually incorrect. In fact, the shareholders of JSL recently approved inter-alia allotment of convertible equity warrants to one of the promoter group entities, which in turn will further increase promoters’ stake in JSL” JSL said.

“JSL had taken loans from lenders, for which equity shares of the Company were pledged by the promoter group entities as collateral security in favour of SBICAP, acting as Security Trustee. The assets of JSL, being the operating company, remain the primary security. The extant disclosures were earlier made by the promoter group companies and SBICAP.”

“The said loan from IndusInd Bank was also availed by JSL in the normal course of business. Accordingly, the shares held by the promoters’ were pledged on pari-passu basis in favour of SBICAP (acting as security trustee), similar to the other existing lenders of JSL. Subsequently, in compliance with SEBI requirements, routine disclosures were made by SBICAP and the promoters” it added.

JSL had posted 86.5 crore net loss in the April-June quarter of the current fiscal.

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