InvestorQ : What is the purpose of JSPL splitting its power business from the steel businss?
Juvina Maggie made post

What is the purpose of JSPL splitting its power business from the steel businss?

Answer
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Deepa Salunkhe answered.
1 month ago


JSPL will hive off its power company into a separate entity. This is likely to give greater synergies and also ensure that the SOTP valuation is more favorable. It is likely that as part of the restructuring, all the group power entities may be consolidated into a single unit.

JSPL had reported a profit of Rs.268 crore in the Jun-20 quarter in contrast to a loss in the corresponding 2019 quarter. The plan is to reduce the debt of the company to more manageable levels. It could also be a play on the opportunities arising in the power sector.