Jindal Worldwide Ltd, a leading integrated textile company, has approved raising up to ₹650 crore through a rights issue as part of its plan to strengthen the balance sheet and become debt-free by FY27.
The company said the fund raise marks a pivotal step in its growth journey and is aimed at reducing debt, improving financial flexibility and creating long-term value for stakeholders.
Company eyes stronger balance sheet
“This fund raise is more than a capital-raising exercise. It is a decisive step towards transforming the financial foundation of our company,” the company said in its filing.
By channelling these funds towards deleveraging, we are positioning Jindal Worldwide for a stronger, more resilient and more profitable future, the management said.
Debt-free
Becoming debt-free by FY27 will unlock greater operational flexibility, improve our credit profile and enhance long-term value for all our stakeholders.
The management believes the initiative will materially reduce interest costs, strengthen the company’s capital structure and free up resources for future expansion across its textile business.
Management outlines growth roadmap
“Raising up to ₹650 crore gives us the firepower to fundamentally reset our balance sheet, and our ambition is clear, we intend to make the company completely debt-free by FY27. This is not an incremental step; it is a genuine turnaround for our business,” said Jindal Worldwide Vice Chairman & Managing Director Amit Agrawal.
The company said the proposed deleveraging will position it to capitalise on future growth opportunities with a significantly de-risked balance sheet.