JSPL unit raises Rs 500 cr via non-convertible debentures to Kotak Mahindra Bank

Jindal Steel and Power (JSPL) on Monday said its subsidiary Jindal Power has raised Rs 500 crore from Kotak Mahindra Bank by issuing 5,000 non-convertible debentures.

In an exchange filing, JSPL said executive sub-committee of Board of Jindal Power, its subsidiary, has allotted 5,000 privately placed rated redeemable unsecured non-convertible debentures totalling Rs 500 crore to the Mumbai-based lender.

This is the second fund raising by the Naveen Jindal-led firm in a gap of just three days from the same lender using the same route.

Parent JSPL had raised Rs 1,000 crore by allotting 10,000 privately placed rated redeemable unsecured non-convertible debentures on December 18.

Like on the previous occasion, JSPL did not mention the purpose of the fund raising this time as well.

However, JSPL along with Jindal Power are needed to pay around Rs 1,800 crore fine for illegal coal mining, as per the Supreme Court directive.

The company would not be able to participate in the coal mines auctions if it fails to pay the fine.

The apex court had quashed allocation of 214 coal blocks alloted to various companies since 1993 and ordered allottees to cough up a penalty of Rs 295 per tonne of coal extracted from these mines.