In December 2010, the Sajjan Jindal-led JSW Steel had entered into a Rs2,157 crore deal to acquire a 41.29% stake in Ispat Industries through preferential issue of fresh shares at a price of Rs19.85 apiece
New Delhi: Market regulator Securities and Exchange Board of India (SEBI) has cleared the acquisition of Ispat Industries by JSW Steel, paving the way for the acquirer to make a fresh offer for buying up to 20% stake from public shareholders, reports PTI.
SEBI has issued its final observations on the Rs1,329 crore open offer for acquisition of 20% stake in Ispat from public shareholders by the acquirer JSW Steel.
The open offer was earlier scheduled to begin on 12th February, but got delayed due to lack of SEBI approval.
The revised schedule for the open offer is likely to be announced soon, as the market regulator has now cleared it.
In December 2010, Sajjan Jindal-led JSW Steel had entered into a Rs2,157 crore deal to acquire a 41.29% stake in Ispat through preferential issue of fresh shares at a price of Rs19.85 apiece.
The deal has an enterprise value of about Rs12,000 crore after paying all the debts and a working capital loan of Ispat Industries, estimated to be about Rs9,500-Rs9,700 crore.
As part of the deal, JSW Steel had offered to acquire an additional 20% stake from public shareholders at a price of Rs20.54 per share in Ispat, aggregating Rs1,329.43 crore.
Any company buying more than 15% in a listed company needs to mandatorily make an offer to buy 20% additional stake from public shareholders and a SEBI approval is required for this offer.
JSW Steel had sought SEBI approval in December 2010 itself, but the approval got delayed as regulator had sought some clarifications on the deal.
Steel Authority of India has started the process of developing Chiria reserves in Jharkhand and has also appointed a global consultant to prepare detailed project execution report
The government said state-owned Steel Authority of India Ltd (SAIL) has started the process of developing Chiria reserves in Jharkhand and has also appointed a global consultant to prepare detailed project execution report.
"SAIL has already initiated the process for development of 7 million tonnes (MT) per annum capacity mechanised mine with state-of-art technology," steel minister Beni Prasad Verma said in a reply to Lok Sabha.
"Hatch Associates of Australia, a consultant of global repute, has been appointed for preparation of Detailed Project Execution Report," the minister added.
Approval of mining plan has been received, the steel minister said, adding that the Ministry of Environment and Forests (MoEF) had given forest clearance to SAIL for mining iron ore from Chiria mines last week with stipulated conditions.
MoEF's Expert Appraisal Committee has recommended environment clearance, Mr Verma said.
"As per conditions stipulated in the stage-1 forest clearance, only mining and crushing up to secondary stage will be carried out at Chiria mine. Balance activities like processing plant...will be carried out outside the forest area," he said.
"Construction and development activities would follow after grant of all the statutory clearance," Mr Verma added.
Asserting that mineral rich Chiria reserves belongs to it, state-owned SAIL had last month said that it was hopeful of commencing mining iron ore from the mines by 2012-13.
"Our plans are ready to mine iron ore from Chiria reserves in Jharkhand.....We hope to start production by 2012-13," SAIL chairman CS Verma had said.
On Monday, SAIL ended 2.73% up at Rs159.65 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.46% at 18,439.48.
PFC will provide a fixed rate of interest up to 8.5% on annual or cumulative basis on infrastructure bonds
Public sector undertaking, Power Finance Corporation Ltd (PFC) plans to raise Rs5,300 crore from infrastructure bonds that opened on 24th February, a senior PFC official said.
"We plan to raise Rs5,300 crore through the public issue of infrastructure bond between 24th February and 22nd March," PFC director (commercial) MK Goel said.
Under the bond issuance, an investor can avail up to Rs20,000 rebate in the taxable income in the current financial year under Section 80CCF of Income-Tax Act, 1961, he said.
The deduction of up to Rs20,000 was over and above Rs1 lakh deduction that an investor can avail under Section 80C of Income-Tax Act, Goel said, adding PFC will provide a fixed rate of interest up to 8.5% on annual or cumulative basis, Mr Goel said.
On Monday, PFC ended 1.03% down at Rs240.50 on the Bombay Stock Exchange, while the benchmark Sensex gained 1.46% at 18,439.48.