Jindal Stainless (Hisar) (JSHL) will be merged into group company Jindal Stainless (JSL), the company management announced on Tuesday. The merger will be completed by H2 FY22 and is subject to NCLT amongst others.
The merger will create a mega stainless steel entity in India, resulting in a stainless steel melt production capacity of 1.9mn mt per annum. According to a company statement, the merged entity will supply more than 120 types of stainless steel grades to cater customers of all segments. The merger will aid operations given JSL’s proximity to port and raw materials import, the statement said.
The merger of JSHL in to JSL will bring a simplified capital structure, expanding the turnover of the merged business to Rs200bn ($2.72bn). The move comes five years after JSHL was carved out of JSL.
After the restructuring, Jindal Stainless Steelway (JSSL) and Jindal Lifestyle will operate as Indian subsidiaries, while overseas operational subsidiaries of JSL in Spain and Indonesia will continue to operate as business units of merged JSL, the company said.
($1=Rs73.3)