Jindal Steel and Power Ltd (JSPL) on Monday said it has made a prepayment of Rs 2,462 crore to its term lenders with an aim to become a net debt-free company.
The company made a prepayment of Rs 2,462 crore to its term lenders. This is in continuation of its long stated financial strategy of debt reduction and building a robust balance sheet with optimum capital mix, JSPL said in a regulatory filing.
JSPL said it has reduced its debt by more than Rs 20,000 crore from a peak of approximately Rs 46,500 crore in 3QFY17 to Rs 25,600 crore as reported in 3QFY21.
"This reduction of Rs 2,462 crore is over and above the annual committed debt reduction in the financial year 2020-2021," the company added.
The company said it is now aiming towards becoming net debt-free, but it did not share by when, PTI said.
JSPL recently announced divestment of its thermal power business to reduce its debt further as well as to cut down on its carbon footprint by almost half.
JSPL's MD V R Sharma said the significant debt reduction is part of the company''s long term financial strategy to create a strong balance sheet.
"In the coming quarters we intend to further strengthen our balance sheet and become net debt-free in the near future,” he added.
At 11.39 AM, the shares of the firm was up 14.45 or 3.01 percent at Rs 494.85 a piece.