JSW Steel completed the acquisition of Vardhman Industries with an investment of Rs63.50 crore ($890mn) on Dec 31. Vardhman Industries is now a wholly-owned subsidiary of JSW Steel.
JSW Steel Limited acquired 100pc equity share of Vardhman for Rs4.5mn and invested Rs59mn in 10pc Compulsorily Convertible Debentures of Vardhman as per the resolution plan approved by the company’s lenders. The plan was approved by the National Company Law Tribunal (NCLT) on Dec 4.
New acquired plant has a capacity of 150,000mt/yr producing high-grade hot rolled bars for varied applications. It also manufactures galvanised tubes, coils, precision steel tubes, corrugated steel tubes, and cold-rolled steel sheets.
With the close of this deal, JSW Steel is hopeful of closing Bhushan Power and Steel, and Asian Colour Coated acquisitions by the end of March quarter.