Jindal Stainless clarifies, "SBICap has not acquired any stake"

JSL clarified that the company 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.

Sep 24, 2020 05:09 IST India Infoline News Service

Jindal Stainless
New Delhi-based Jindal Stainless (JSL) has clarified on buzz which claimed that SBICAP Trustee Company has acquired over 56% stake in the company. Jindal Stainless has denied the rumours and said, "this information is incorrect and misleading."

Clarification was sought from JSL over a news article which appeared in the Business Standard captioned as "SBICAP Trustee Company acquired 56.17% stake in Jindal Stainless”

As per the news article, JSL' promoters had pledged shares as collateral to secure a term loan of Rs400cr from IndusInd Bank. JSL had pledged 13.02 million shares to secure the term loan, said SBICAP in a BSE filing.

However, JSL clarified to exchanges on Thursday, saying, "In this regard, we wish to inform you that SBICAP Trustee Company Limited ("SBICAP") has not acquired any stake in Jindal Stainless Limited (“JSL”) and this information is incorrect and misleading."

In its clarification note, JSL highlighted that the company 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. Adding, JSL said, "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."

Further, JSL added, "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 the 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."

Thereby, JSL clarifies saying, "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 the only extension of pari-passu pledge and does not in any way results in the acquisition of the stake in the JSL. The information surfacing acquisition of stake by SBICAP is therefore factually incorrect."

JSL also stated that 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.

On Sensex, JSL stock finished at Rs40.60  per piece down 1.69%. 

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