JSW Steel, India's third largest steelmaker has decided to raise $1 billion (about Rs 4,775 crore) through qualified institutional placement (QIP) and issue of securities in the international markets.

The board of directors of the company has already approved the raising of long-term funds aggregating $1 billion.

The Sajjan Jindal-led firm plans to raise the funds by issue of securities to qualified institutional buyers (QIBs) in one or more tranches.

The move was taken by the company to raise funds for part-financing its capital expenditures and for meeting general corporate purposes, including reducing the leverage, depending on market dynamics.

Apart from latest development, the firm is also planning to issue foreign currency convertible bonds (FCCBs), global depository receipts (GDRs) in one or more tranches to raise the funds.

Earlier this month, the company had informed that it plans to close down its US mills for three months from June due to poor demand and has almost halved its workforce at its US steel mills.

Following the announcement, shares of JSW Steel climbed to Rs 596, while later it settled the day at Rs 550, up 6% compared to previous close of Rs 516.