JSW Steel: JSW Steel raises $500 million via offshore bonds

The company received subscriptions worth $1.75 billion, about four times the quantum of bonds on offer, two people with direct knowledge of the sale told ET.Apr 10, 2019, 11.20 PM ISTAgenciesOn April 4, ET reported that JSW Steel was set to raise $500 million through overseas bonds.MUMBAI: JSW Steel, India’s biggest maker of the alloy,…

The company received subscriptions worth $1.75 billion, about four times the quantum of bonds on offer, two people with direct knowledge of the sale told ET.

On April 4, ET reported that JSW Steel was set to raise $500 million through overseas bonds.

ET | Apr 10, 2019, 11.20 PM IST

– TFMNews

MUMBAI : JSW Steel, India’s biggest maker of the alloy, Wednesday completed raising $500 million by selling dollar bonds, marking a revival in global debt issues by large local companies.

The company received subscriptions worth $1.75 billion, about four times the quantum of bonds on offer, two people with direct knowledge of the sale told ET.

The dollar-denominated bonds, maturing in five years, offered 5.95%.

On April 4, ET reported that JSW Steel was set to raise $500 million through overseas bonds. The company would use the proceeds to expand capacity at its Vijayanagar plant in Karnataka.

Deutsche Bank, First Abu Dhabi Bank, BNP, Citi, JP Morgan and Standard Chartered are among the investment bankers that helped JSW Steel raise the funds.

“Quite frankly, even after the strong re-opening of the international bond markets for Indian high-yield issuers, the response to JSW Steel has been overwhelming,” said Amrish Baliga, MD & Head Financing, Deutsche Bank, one of the lead bankers to the issue.

The order book reflected the quality of this credit instrument, which was well articulated to an international audience, said Baliga.

Fitch and Moody’s rated the steelmaker’s bonds BB and Ba2, respectively, one notch below the investment grade, with stable and positive outlook.

Source ET

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TFM News | The Future Markets

India’s bankruptcy court NCLT approves ArcelorMittal’s takeover of Essar Steel

India’s bankruptcy court National Company Law Tribunal (NCLT) approves ArcelorMittal’s takeover of 10 million tonne steel plant of Essar Steel

ArcelorMittal confirmed the National Company Law Tribunal (NCLT) had approved the takeover of the 10 million tonne steel plant of Essar Steel by itself and Japan’s Nippon Steel & Sumitomo Metal Corp, paving the way for the first major foreign participation in India’s steel sector.

– TFM Watch

(Reuters) – India’s bankruptcy court on Friday approved global steel giant ArcelorMittal SA’s bid for debt-ridden Essar Steel, potentially ending months of court battles and opening the country’s steel industry to outsiders.

ArcelorMittal confirmed the National Company Law Tribunal (NCLT) had approved the takeover of the 10 million tonne steel plant of Essar Steel by itself and Japan’s Nippon Steel & Sumitomo Metal Corp, paving the way for the first major foreign participation in India’s steel sector.

ArcelorMittal has been trying to enter India’s fast-growing steel market, which is dominated by local companies, for over a decade but bureaucratic hassles and land acquisition woes stifled its bids.

“We welcome today’s pronouncement by the NCLT Ahmedabad,” ArcelorMittal said in a statement. “We hope to complete the transaction as soon as possible.”

Essar Steel, with debts of 50.78 billion rupees ($725.38 million), was among the so called dirty dozen – twelve large steel and other infrastructure companies which defaulted and were referred to India’s bankruptcy court in 2017.

The company became synonymous with the tardy pace of debt resolution by Indian banks saddled with billions of dollars of bad loans.

When a new bankruptcy law was introduced in 2016 by Prime Minister Narendra Modi, it was seen by investors as a bold move which would ease lending pressure on banks and boost private investment.

However, three years later, most large cases are still languishing in the courts or yet to be resolved – bad news for Modi who is seeking re-election in a month’s time amid border tensions and growing discontent due to high unemployment.

The NCLT approved ArcelorMittal’s bid in October, even as Essar’s founders – the billionaire Ruia family – tried to hold onto the company, offering 543.89 billion rupees to clear its debts.

“We continue to believe that our settlement proposal…is the most compelling one available to Essar Steel creditors,” Essar said in a statement on Friday.

“We are awaiting a copy of the NCLT order, and will take a call on next steps after examining the same,” the statement added.

The case between ArcelorMittal and the Ruia family reached the Supreme Court in January, with Essor’s debt resolution process lasting around 600 days in total.

Local steel giant JSW Steel Ltd and mining conglomerate Vedanta Ltd also bid for the western Indian steel plant.
ArcelorMittal said in October the company would pay a total of 420 billion rupees ($5.73 billion) towards Essar Steel’s debt and put another 80 billion rupees into operations and profitability.

Source: Reuters

– TFM Watch

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10 stocks that brokerages say can give solid returns in 2 to 3 weeks

M&M, Maruti & ICICI Pru among 10 stocks that brokerages say can give solid returns in 2-3 weeks

Investors are treading cautiously ahead of the release of key macro data prints, including GDP.

TFM Watch

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Upbeat global sentiment on the back of positive signals from US-China trade negotiations lifted domestic equity benchmarks Nifty and Sensex in opening deals on Monday.

The rupee, too, saw a bounce, opening 11 paise higher at 71.03 against the US dollar amid some selling of the US dollar by banks and exporters.

However, a rise in crude oil prices, which jumped near their highest since mid-November, restricted the gains in domestic stocks.

Investors are also treading cautiously ahead of the release of key macro data prints, including GDP and infrastructure output numbers.

Around 10 am, BSE Sensex was up 74 points at 35,945, while Nifty rose 12 points to 10,804.

Technical analysts see stock-specific opportunities in the market. Based on various brokerage recommendations, here is a list of 10 stocks that can potentially deliver solid gains over the next 2-3 weeks.

Gajendra Prabu, technical analyst, HDFC Securities

M&M | Buy | Target price: Rs 690 | Stop loss: Rs 624
The stock has validated the Doji candle pattern formed on the daily charts (moved above the candle’s high), confirming the bullish reversal. The stock has been forming higher tops and bottoms in a smaller degree, which is a bullish continuation structure. Apart from this, the stock is attempting to cover the gap witnessed on February 11, 2019, between Rs 673 to Rs 678. In addition, a positive divergence has emerged on the RSI oscillator, which could give strength to the bulls. “Traders may look to buy the stock at current market price and add on dips up to Rs 630 level for an upside target of Rs 690. Place a stop loss at Rs 624 on a closing basis,” Prabu said.

Reliance Industries | Buy | Target price: Rs 1,322 | Stop loss: Rs 1,190
This stock has completed a Three Wave decline from Rs 1,264 to Rs 1,211, which is major Wave D with internal strong irregular Wave B. It is now in the process of forming a Wave E, which could ideally make a new lifetime high above Rs 1,321, which is slightly above the previous lifetime high. At the end of internal Wave C (Rs 1,211), a Morning Star candle pattern has emerged, which is a bullish reversal sign. The stock has been maintaining higher tops and bottoms. In addition, it is trading above all key moving averages, such as 21, 50 and 200-day EMAs. “Traders may look to buy the stock at the current market price and add on dips to Rs 1,215 for the upside target of Rs 1,322. Place a stop loss at Rs 1,190 on the closing basis,” Prabu said.

Vaishali Parekh, Senior Technical Analyst, Prabhudas Lilladher

Hero MotoCorp | Buy | Target price: Rs 2,950 | Stop loss: Rs 2,560
The stock has witnessed a decent erosion recently from the peak of Rs 2,960 and bottomed out at around Rs 2,580 level to make a double bottom formation pattern on the daily chart. The formation of a positive bullish candle has made the chart look very attractive and has improved the bias. “With the RSI showing a trend reversal from the oversold zone, the stock has given a buy signal and with good volume participation, we recommend a buy rating on this stock for an upside target of Rs 2,950, keeping a stop loss of 2,560,” said Parekh.

JSW Steel | Buy | Target price: Rs 330 | Stop loss: Rs 260
This stock has eroded much of its gain in the past four to five months from the peak of Rs 427 and recently showed signs of bottoming out around Rs 255 level. A bounceback has made the chart look promising for further upward movement. The RSI has slowly started rising to maintain a positive bias. “With consistent volume activity seen, we recommend a buy rating on the stock for an upside target of Rs 330, keeping a stop loss at Rs 260,” Parekh said.

Aditya Agarwala, Senior Manager, technical analysis, YES Securities

Maruti Suzuki India | Buy | Target price: Rs 7,215-7,350 | Stop loss: Rs 6,700
On the daily chart, Maruti Suzuki India has turned north after taking support at the 61.8 per cent Fibonacci retracement level, which is placed at Rs 6,700. Further, a sustained trade above Rs 6,950 will extend the rise to Rs 7,215-7,350 levels. The RSI has turned upward after taking support at the lower end of the bull zone i.e. 48- level, and has formed a positive reversal on the daily chart, suggesting bullishness on the counter.

Dabur India | Buy | Target price: Rs 460- 477 | Stop loss: Rs 418
On the daily chart, Dabur India has turned upward after taking support at the lower end of the channel pattern, indicating higher levels in the coming sessions. It has turned upward above its previous support low of Rs 417, affirming strength in the stock. Moreover, the RSI has turned upward from the 40-level after forming a positive reversal, indicating bullishness.

Pfizer | Buy | Target price: Rs 3,150-3,250 | Stop loss: Rs 2,900
On the daily chart, Pfizer is on the verge of a breakout from a bullish flag pattern neckline placed at Rs 3,030. A sustained trade above Rs 3,030 with healthy volumes would trigger a bullish breakout, taking the stock higher to the levels of Rs 3,150-3,250. On the weekly chart, it has broken out from a sideways consolidation phase, confirming the bullishness. Moreover, RSI has turned higher from the 50-level indicating that bulls are in control of the stock.

Mazhar Mohammad, Chief Strategist – technical research & trading advisory, Chartviewindia.in

Ashok Leyland | Buy | Target price: Rs 89 | Stop loss: Rs 77
The stock registered a reversal formation a couple of days back on relatively much higher volumes. After a big single-day upward move, the stock has undergone correction and consolidation and formed a decent base around Rs 80 from where a pullback rally can be expected.

Exide Industries | Buy | Target price: Rs 227 | Stop loss: Rs 202
After a decent correction from the highs of Rs 273, this counter has found buying interest around Rs 203, as for the last couple of sessions, it was stable around this level and looks on the verge of a pullback rally.

Jay Thakkar, CMT – Head Technical and Derivatives Research, Anand Rathi Shares and Stock Brokers

JSW Steel | Buy | Target price: Rs 308 | Stop loss: Rs 272
This stock has seen a breakout from the downtrend line as well as from an inverse head and shoulders pattern. The momentum indicator has also provided a buy crossover with a positive divergence. “From a short-term perspective, the stock can be bought for the target of Rs 308 with a stop loss of Rs 272,” said Thakkar.

ICICI Prudential Life Insurance | Buy | Target price: Rs 334 | Stop loss: Rs 308
This stock has seen a breakout from the symmetrical triangular pattern with a buy crossover on its momentum indicator MACD. It has also seen a breakout from the short-term moving average, and thus showing the probability that the upside is high.

(Views and recommendations given in this section are the analysts’ own and do not represent those of TheFututeMarkets.com. Please consult your financial advisor before taking any position in the stock/s mention.)

Source: ET Markets

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JSW Steel Q3 2019 quarterly net profit slips 7.4%

  • JSW Steel Ltd on Wednesday posted a 7.4 percent drop in third-quarter net profit, missing estimates, dented by a decline in steel prices.
  • Net profit came in at Rs 1,624 crore ($226.75 million), for the three months ended December 31, compared with a profit of Rs 1,753 crore a year ago, the company said.

2018-06-21T132533Z_1_LYNXMPEE5K1EE_RTROPTP_3_JSW-STEEL-DEBT-768x551.jpg

JSW Steel Ltd on Wednesday posted a 7.4 percent drop in third-quarter net profit, missing estimates, dented by a decline in steel prices.

Net profit came in at Rs 1,624 crore ($226.75 million), for the three months ended December 31, compared with a profit of Rs 1,753 crore a year ago, the company said.

Analysts on average were expecting the Mumbai-headquartered company to report a profit of Rs 1,740 crore, according to Refinitiv data.

Total revenue for the third quarter from all JSW operations jumped 11.2 percent to Rs 20,318 crore from the previous year.

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