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Falling profit and slowing demand has not deterred JSW Steel Chairman Sajjan Jindal release 5.07 crore of pledged share.
The Jindal-family owned companies have repaid ₹ 1,150 crore to release 5.07 crore of pledged shares representing 2.01 per cent of the company's share capital.
Three promoters' owned companies -- JSW Techno Projects Management, Sahyog Holdings and Vividh Finvest -- repaid the money to release the shares, said JSW Steel in a statement on Thursday.
Also read: All you wanted to know about promoter pledging
In last one year, shares of JSW Steel has fallen sharply from a 52-week high of ₹427 on September 21, 2018 to make a new low of ₹202 on August 29.
It was trading down two per cent at ₹216 on Thursday.
Huge capital investment in capacity expansion amid slowing demand had triggered investors concern and spooked steel company stocks, including that of JSW Steel.
When share prices are falling promoters usually repay debts raised against their equity as the sharp fall in share price would call for additional security in the form of cash or more shares, said an analyst.
JSW Steel will be investing about ₹15,000 crore in this fiscal to complete various ongoing expansion projects.
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