For Rs. 958 crore, Jindal Stainless buys the remaining 74% of JUSL
On Thursday, Jindal Stainless said that it has paid Rs 958 crore to buy the last 7.4% of Jindal United Steel Limited, which is situated in Odisha.
According to a business statement, JSL, which formerly had a 26% share in Jindal United Steel Limited (JUSL), now owns all of the firm.
“JSL has now paid cash consideration of Rs 958 crore for the remaining 74% equity ownership in JUSL. JSL said that JUSL is now a fully owned subsidiary of JSL as a result of the deal.
JUSL has been running a cold rolling mill with a capacity of 0.2 MTPA as well as a hot strip mill (HSM) with a capacity of 1.6 MTPA. At Jajpur in Odisha, it is also undergoing capacity development to accommodate up to 3.2 MTPA.
According to Abhyuday Jindal, managing director of JSL, “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.”
According to him, this merger will increase the synergies between the two businesses and create a preferable governance structure, increasing the value for all parties involved.
The acquisition has already received approval from the JSL board of directors and shareholders.
The biggest stainless steel producer in the nation, Jindal Stainless, with an annual melt capacity of 2.9 million tonnes (MT). In Haryana and Odisha, it has two production facilities for stainless steel.
