share

Jindal Stainless Acquires Remaining Stake in Chromeni Steels, Secures Wholly-Owned Subsidiary

Jindal Steel
Preeti Bali / 10:27 am / June 25, 2024

Jindal Stainless Ltd (JSL) announced on Monday the successful acquisition of the remaining 46% stake in Chromeni Steels Private Ltd (CSPL) for Rs 278 crore. This definitive move grants JSL complete ownership of CSPL, effective June 15, 2024.

Consolidation of Ownership

Jindal Stainless released a statement detailing the transaction. The company highlighted the acquisition of the remaining equity stake in CSPL, bringing the total ownership to 100%. The financial outlay for this acquisition is Rs 278 crore, encompassing both the equity transfer and settlement of shareholder debt.

Building on Previous Investment

JSL had previously acquired a 54% stake in CSPL through an indirect acquisition deal valued at Rs 1,340 crore. With the recent acquisition, the total cost of acquiring CSPL for JSL reaches approximately Rs 1,618 crore.

Strategic Investment for Growth

JSL CEO Tarun Kumar Khulbe expressed his optimism regarding the acquisition. He stated that complete ownership of CSPL represents a significant step up the value chain for the company. Khulbe anticipates the CSPL facility to be operational soon, enabling JSL to capitalize on the robust domestic demand for stainless steel, which is currently experiencing a growth rate of 7-9% annually.

CSPL: Bolstering JSL’s Production Capabilities

The acquired entity, CSPL, owns a 0.6 MTPA (metric tonnes per annum) capacity cold rolling mill located in Mundra, Gujarat. This acquisition is expected to significantly enhance JSL’s production capabilities and cater to the growing domestic steel demand.

More Stories