New Delhi: In continuation of its long stated financial strategy of debt reduction, Jindal Steel and Power (JSPL) on Monday said that it has made a prepayment of Rs. 2,462 crore to its term lenders. This reduction of Rs.2,462 Cr is over & above the annual committed debt reduction in the financial year 2020-2021.
JSPL rose 2.91% to Rs. 493.85 on the NSE at 11 am Monday.
The Naveen Jindal-led company has already reduced its debts by Rs.20,000 crore to bring down its net debt to 25,600 crore by December 2021 from a peak of Rs. 46,500 in the 3rd quarter of 2016-17 financial year.
JSPL has recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.
“The significant debt reduction is part of our long term financial strategy to create a strong balance sheet. In the coming quarters we intend to further strengthen our balance sheet and become net debt free in the near future” said V R Sharma, MD, JSPL said.