Jindal Stainless has no plans to raise capital through listing of its subsidiaries before March 2018, as the country’s largest stainless steel maker is currently concentrating on financial and operational restructuring.

The debt-laden company is in no hurry to list its subsidiaries -- Jindal United Steel ltd (JUSl) and Jindal Coke ltd (JCl) -- as it feels that it will not be able to realise the assets’ real value in the prevailing market conditions.

Jindal Stainless (JSl) embarked on a financial re-engineering exercise by distributing the Rs8,580-crore debt among four firms, which will help it in cutting down interest costs by over 3 per cent.

It is also redistributing assets among three entities -- JUSl, JCl and Jindal Stainless (Hisdar) ltd (JSHl) -- to leverage idle capacity as well as streamline operations and optimise production.

JSHl will be listed and JSl’s shareholders will be issued shares by JSHl as per the share entitlement ratio of 1:1.

“We are not planning to go to the market (IPO) in near future, one is that we are not geared. let the emerging entities stabilise their operations and at an appropriate time whenever value is perceived, then we will hit the market,” JSl Senior VP (Corporate Strategy) Rajiv Rajvanshi told the news agency.

Explaining the rationale, he said for the initial two and a half years, JUSl and JCl will be in project stage, so it does not make any sense in short term to go to the market.

“Because if you go to the market, the market will not see any operations for the next two and a half years and they will not assign any value to this. So, I think once these firms start their operations, the project stage is finished then we hit the market for JUSl and JCl,” Rajvanshi explained.

Besides, promoters are infusing money into the projects to ensure that JSl succeeds with its financial re-engineering and operational restructuring, he added.

“We are bringing Rs675 crore equity. Out of this, Rs100 crore will come in stainless steel, Rs500 crore in JUSl that family (Jindals) is bringing and Rs75 crore in coke oven.

“On coke oven as I had mentioned Rs200 crore is the cost of the second battery (setting up second oven), Rs75 crore promoter funding and Rs125 crore is debt,” he said. He further said cold rolling facility is one of the platforms where the saleability of a product increases. So, hiving off some asset which is helping sales to grow is not advisable at this stage.