JSL Stainless, which reported a loss of INR 97.94 crore for the July to September 2011 quarter, plans to raise INR 1,500 crore by issuing securities and placement of shares with qualified institutional buyers. It had reported a net profit of INR 64.66 crore for the corresponding quarter of 2010-11. However, it incurred losses during the July to September quarter due to foreign exchange losses of INR 154.95 crore.

The company said that "On account of highly volatile foreign currency exchange movements and current economic global uncertainties, there has been mark to market net losses of INR 154.95 crore on outstanding foreign currency monetary items derivative contracts."

During the quarter, net sales increased by 5.65% at INR 1,837.64 crore during the quarter under review vis a vis INR 1,739.41 crore of the July to September 2010 period.

Operations and profitability of ferroalloy and thermal power plant of the company in Orissa were adversely affected on account of higher input prices of chrome ore and coal due to prevailing trade policies of state or central government establishments.

JSL Stainless has also decided to rename itself to Jindal Stainless and has appointed Mr Ramesh R Nair as its president & Executive Director. It added that the company will raise up to INR 750 crore through issuance of securities from the market.

Besides this, JSL Stainless will also issue shares to institutional buyers through Qualified Institutional Placement to raise up to INR 750 crore additionally.

(Sourced from Press Trust of India)