New Delhi, Sep 26 (IANS) JSW One Platforms' draft red herring prospectus (DRHP) showed that the company is involved in five tax-related matters, while its promoters are facing 340 tax matters and three criminal proceedings, with litigation involving promoters amounting to over Rs 138.9 billion.

As per the filing, there are five tax-related matters pending against JSW One Platforms involving an aggregate amount of Rs 95.71 million. The company said there are no criminal proceedings pending either against or by the company.

The document further disclosed that the company's subsidiaries are involved in one criminal proceeding and four tax matters against them, involving an aggregate amount of Rs 18.29 million. Three criminal proceedings have also been initiated by subsidiaries, according to the filing.

The DRHP showed that the company's directors are facing three actions by statutory or regulatory authorities, though no criminal proceedings or tax matters have been reported against them.

The largest litigation exposure relates to the promoters. According to the filing, promoters are involved in three criminal proceedings, 340 tax matters, 36 actions by statutory or regulatory authorities, six disciplinary actions by SEBI or stock exchanges in the last five fiscal years, and 11 other material litigation matters. The aggregate amount involved in proceedings against promoters stands at approximately Rs 138.95 billion.

The filing also disclosed 210 proceedings initiated by promoters involving an aggregate amount of about Rs 78.28 billion, along with nine other material litigation matters.

JSW One Platforms stated that none of its group companies are currently involved in proceedings that would have a material adverse impact on the company. However, it noted that the name of one group company acquired through the Insolvency and Bankruptcy Code (IBC) process continues to appear in databases of defaulters and wilful defaulters maintained by credit information agencies and investor watchlists.

The company said these defaults related to the period before the acquisition by the JSW Group and that the entity has since obtained no-dues certificates from relevant banks. It added that requests have been made to remove the company's name from the defaulter and wilful defaulter categories.

According to the draft papers, JSW Steel plans to sell shares worth up to Rs 811 crore through the OFS, while JSW Cement will offload shares worth up to Rs 123 crore. Existing investor Mitsui & Co will sell shares valued at up to Rs 820.01 crore.

The DRHP noted that the company, its subsidiaries, promoters and directors are involved in certain legal proceedings and cautioned that any adverse ruling could result in liabilities, penalties and reputational risks, which may adversely affect business operations and cash flows.

--IANS

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