Jindal Stainless Ltd lost over 8 percent on Monday, September 26, 2022 after the board approved raising ₹99 crore through the issuance of non-convertible debentures (NCDs).
During Monday's trade, the share price opened on a negative note at Rs. 135 against the previous close of ₹137.10.
The stock continued to plunge down during the morning session and touched a low of ₹124. It was trading at ₹127.30 per share at 11:40 am on the NSE.
The stock touched a 52-week-high of ₹224.40 on February 8, 2022 and a 52-week-low of ₹95.05 on June 20, 2022, indicating that at the current level, the stock is trading at 33.92 percent above its 52-week low. Additionally, the stock has dipped almost 35.15 percent this year.
On September 23, the board of Jindal Stainless approved to raise funds by way of issue of upto 990 rated, listed, unsecured, redeemable, non-convertible debentures having face value of ₹10,00,000, aggregating to ₹99 crore, through private placement basis, Business standard reported.
The funds raised by the issue of NCDs will be utilized towards, repayment of existing debt and
high-cost debt facilities, part funding of capital expenditure (including maintenance capex), long term working capital requirements, and reimbursement of capital expenditure for last 6 (six) months, the company stated in a regulatory filing.
Jindal Stainless Ltd., established in 1980, is a small cap company with a market capitalisation of ₹7,204.54 crores functioning in the metals - ferrous industry. The company delivered ROE of 36.27% in year ending 31 Mar, 2022 outperforming its 5 year avg. of 17.68%.
Consolidated Total Income for the three months ending June 30, 2022, reported by the firm, was ₹5,490.91 crore, up 35.84% from the same quarter last year and down 16.59% from the previous quarter's Total Income of ₹6,582.84 crore. In the most recent quarter, the company generated net profit after tax of ₹302.54 crore.
