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Friday, 21 November, 2008, 20:20 GMT | more >>

Jindal founders pare back holding



By Upstream staff 

The founders of Indian offshore services player Jindal Drilling & Industries are set to reduce their stake to below 75% by February to meet the regulatory norms by February, a company official said today.

"Plan is to reduce the stake either through issue of fresh shares or promoters (founders) selling the shares to strategic or financial investors," Anil Jain, chief financial officer of the DP Jindal group told Reuters.

Currently the Jindal family and its companies hold 83.5% of the company's equity. Regulatory norms require that they reduce their stake to 75% by March 2007.

The group's stake increased to over 75% after the merger of group companies Newsco Newtech and Discovery Hydrocarbons this year.

Jain said the shares of the company are expected to relist by the end of November.

The stock exchanges stopped trading in the company's shares in September to let merger take effect.

Jain said the company is planning to add one more offshore rig at a cost of $171 million and it is expected to be delivered around October 2008.

The new rig will be owned by the company's Singapore arm Discovery Drilling. About 15% of the rig's cost will come from Jindal Drilling's coffers, with the balance coming from foreign currency loans, he said.

The fund requirement would be phased, with ICICI Bank lined up to carry out the loan syndication.


Wednesday, 01 November, 2006, 11:41 GMT  | last updated: Wednesday, 01 November, 2006, 11:41 GMT

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