NEW DELHI: Jindal Stainless Ltd (JSL), India's largest stainless steel manufacturer, said on Thursday it has successfully exited from the corporate debt restructuring (CDR) framework with effect from March 31 last year.
The existing CDR lenders have realised the full recompense of about Rs 275 crore in cash which will add to their income in the current fiscal itself.
Additionally, JSL has fully redeemed the outstanding optionally convertible redeemable preference shares (OCRPS) which were issued to the lenders in June 2017 and has paid around Rs 558 crore, taking the aggregate realisation of lenders to around Rs 833 crore.
Earlier, promoter group entity infused equity and subsequently, JSL issued non-convertible debentures (NCDs) worth Rs 400 crore to Kotak Special Situations Fund (KSSF). These funds assisted JSL in redeeming the OCRPS.
KSSF has also acquired about 5 per cent equity stake in JSL through the secondary market, which demonstrates increased investors' confidence in the company's operations and growth outlook. "The exit from CDR marks a significant step forward for JSL. This underlines the improvement in JSL's liquidity profile and profitability," said MD Abhyuday Jindal.
"The exit will not only provide financial and operational flexibility to our business but will pave the way for a new growth phase. The CDR tenure was prolonged as sustained imports impacted our top-line growth," he said in a statement.
The company has seen an improvement in net debt-equity ratio which stood at 1.3 as on December 31, 2019 as compared to 3.2 as in March 2017.
JSL has an installed capacity of 1.1 million tonnes per annum. Going forward, the company aims to focus on cost optimisation strategy and will evaluate opportunities for attaining higher operational efficiency, it said.