FCC

Jindal Stainless acquires 74% stake in Jindal United Steel

2023-07-24

Jindal Stainless announced that it has completed the acquisition of the remaining 74 per cent stake in Jindal United Steel (JUSL), an Odisha-based company, for Rs 9.58 billion. Previously, JSL held a 26 per cent stake in JUSL. With this transaction, JUSL now becomes a wholly-owned subsidiary of JSL.

The acquisition involved a cash consideration of Rs 9.58 billion, and it consolidates all the critical facilities of stainless steel manufacturing under one umbrella. JUSL currently operates 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. Additionally, it is undergoing capacity expansion up to 3.2 MTPA at Jajpur, Odisha.

Abhyuday Jindal, Managing Director of JSL, stated that due to the positive outlook on stainless steel and the association between JUSL and JSL, the decision to consolidate the stainless steel manufacturing facilities was made by the board of directors.

The acquisition is expected to foster improved synergies between the two companies and establish a preferred governance structure, ultimately enhancing the value for all stakeholders. Both the board of directors and JSL shareholders had previously approved this transaction.

Jindal Stainless is the largest stainless steel making company in the country, with an annual melt capacity of 2.9 million tonnes (MT). It operates two stainless steel manufacturing units in Haryana and Odisha.