Jindal Stainless acquires remaining 74% stake in JUSL for Rs 958 cr

Jindal Stainless said on Thursday that it has acquired the remaining 74 per cent stake in Odisha-based Jindal United Steel Limited for Rs 958 crore.

A company release said that Jindal United Steel Limited (JUSL) has become a 100 percent owned subsidiary of JSL, which it owned 26 percent of its shares earlier.

JSL said, “JSL has now acquired the remaining 74 per cent equity interest in JUSL for a cash consideration of Rs. 958 crore. The transaction makes JUSL a 100 per cent owned subsidiary of JSL.”

JUSL operates a 1.6 MTPA hot strip mill (HSM) and a 0.2 MTPA cold rolling mill. It is also undergoing a capacity expansion of up to 3.2 Mtpa at Jagpur, Odisha.

JSL Managing Director Abhyuday Jindal said, “Considering the strong outlook on stainless steel and the interdependence of JUSL and JSL, the JSL Board of Directors has decided to consolidate all vital stainless steel manufacturing facilities under one umbrella.”

He said that this acquisition will result in improved synergies between the two companies and a favorable governance structure, thus enhancing value for all stakeholders.

The board of directors and shareholders of JSL had earlier approved the transaction.

Jindal Stainless is the largest stainless steel manufacturer in the country with an annual smelting capacity of 2.9 million tons (MT). It has two stainless steel manufacturing units located in Haryana and Odisha.