JUSL becomes a 100% owned subsidiary of JSL

Jindal Stainless Limited (JSL), India's largest stainless steel manufacturing company, today completed the acquisition of Jindal United Steel Limited (JUSL). Earlier, JSL held 26% stake in JUSL; it has now acquired the remaining 74% equity stake in JUSL for a cash consideration of INR 958 crores. The transaction makes JUSL a 100% owned subsidiary of JSL.

JUSL has been operating the Hot Strip Mill (HSM) of 1.6 million tons per annum (MTPA) capacity and a Cold Rolling Mill of 0.2 MTPA capacity. It is also undergoing capacity expansion up to 3.2 MTPA at Jajpur, Odisha.

Commenting on the acquisition, Managing Director, JSL, Mr Abhyuday Jindal, said, "Given the strong outlook on stainless steel and the association of JUSL and JSL, the Board of Directors of JSL decided to consolidate all the critical facilities of stainless steel manufacturing under one umbrella. This acquisition would result in improved synergies between both the companies and a preferred governance structure, thereby enhancing value for all stakeholders."

The Board of Directors and the shareholders of JSL had earlier approved the transaction.

Shares of Jindal Stainless Limited was last trading in BSE at Rs. 368.30 as compared to the previous close of Rs. 366.80. The total number of shares traded during the day was 21083 in over 671 trades.

The stock hit an intraday high of Rs. 371.50 and intraday low of 356.30. The net turnover during the day was Rs. 7639167.00.

Source : Equity Bulls

Keywords

JindalStainless INE220G01021 JSL Acquisition JindalUnitedSteel