The Sajjan Jindal-led JSW Group on Monday said it has repaid loans worth Rs 640 crore and released pledged shares of JSW Steel and JSW Energy.
The company released 1.09 crore pledged promoter share of JSW STEEL worth of Rs 165 crore whereas 5.48 crore of pledged shares worth of Rs 243 crore of JSW Energy were also released post loan repayment.
JSW Steel has a net debt of Rs 42,341 crores and JSW Energy has a net debt of Rs 2,879 crores.
Pledging of promoter shares is a common practise in corporate India and is used as a tool to manage debt.
The latest reduction in promoter pledged shares is followed by similar debt repayment. In September, promoters of JSW Steel, JSW Techno Project Management, Sahyog Holdings and Vividh Finvest had had repaid Rs 1,150 crores to release of 5.07 crore of its pledged shares.
In October, JSW repaid Rs 1,200 crore to release 7.01 crore shares of JSW Steel accounting for 2.90 per cent of paid-up capital of the company while 11.88 crore of JSW Energy shares were released adding up to 7.24 per cent of paid-up capital.
JSW Steel share was trading little above the 52-week low of Rs 136 logged on March 23. JSW Energy had made a 52-week low of Rs 34.75 on March 18.
( 236 Words)