Jindal Stainless picks up remaining 74% stake in JUSL for Rs 948 crore; stock hits fresh high

21 Jul 2023 , 12:15 PM

Jindal Stainless announced the purchase of the remaining 74% share in Odisha-based Jindal United Steel Limited for Rs 958 crore. According to a business release, Jindal United Steel Limited (JUSL) has become a wholly owned subsidiary of JSL, in which the company previously held a 26% share.

After the said development, Jindal Stainless’ counter touched a new 52-week high of Rs 374.60 on NSE.

‘JSL has now acquired the balance 74% ownership stake in JUSL for a cash consideration of Rs 958 crore, and therefore, it is now a wholly owned subsidiary of JSL,” said the company.

JUSL has a hot strip mill (HSM) with a capacity of 1.6 million tonnes per annum (MTPA) and a cold rolling mill with a capacity of 0.2 MTPA. It is also expanding its capacity in Jajpur, Odisha, to 3.2 MTPA.

This purchase would result in increased synergies between the two organizations as well as a preferred governance structure, increasing the value for all stakeholders, said JSL Managing Director Abhyuday Jindal.

The transaction was earlier approved by JSL Shareholders and the board of directors.

Jindal Stainless is the country’s largest stainless-steel manufacturer, with 2.9 million tonnes (MT) annual melt capacity. It operates two stainless steel manufacturing plants in Odisha and Haryana.

At around 12.11 PM, Jindal Stainless was trading 0.88% higher at Rs 370.80, against the previous close of Rs 367.55.

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