“Management believes de-merging steel and power businesses will unlock value,” sources told ET NOW.
Market analysts believe power business valuation may see an upside. “Analysts estimates factor in just 1,200 MW in valuations out of 3,400 power asset,” it said.
VR Sharma, MD, JSPL said, “The decision on demerger is yet to be taken.”
Earlier, the management had guided in May to reduce debt and focus on value creation.
Shares of JSPL traded 3.47 per cent higher at Rs 235.45 at around 12.54 pm (IST) on Thursday, while the benchmark BSE Sensex traded 0.96 per cent higher at 38,248 at around the same time.
The company had last month reported a consolidated net profit of Rs 268 crore for the first quarter ended June 30 against a net loss of Rs 87 crore in the corresponding quarter last year, on the back of increased volumes and lower raw material prices.