Jindal Stainless acquires remaining 46% stake in Chromeni Steels for Rs 278 Cr
Jindal Stainless earlier acquired a 54% equity stake in Chromeni Steel for Rs 1,340 crore, making the overall acquisition cost of the company about Rs 1,618 crore.
Jindal Stainless on Monday said it has acquired the remaining 46% stake in Chromeni Steels Private Ltd (CSPL) for Rs 278 crore.
Consequently, CSPL has become a wholly-owned subsidiary of the company, with effect from June 15, 2024, Jindal Stainless Ltd (JSL) said in a release.
"Jindal Stainless acquires remaining 46% equity stake in Chromeni Steels Private Ltd. The transaction entails a total outlay of Rs 278 crore, comprising payment towards equity transfer and payment of shareholders' debt," it said.
Jindal Stainless earlier acquired a 54% equity stake in CSPL through an indirect acquisition deal for Rs 1,340 crore.
The overall acquisition of CPSL costs around Rs 1,618 crore to JSL.
"The acquisition of a 100% equity stake in Chromeni will help us climb the value chain. Since we expect the facility to be operational soon, this strategic move will enable the company to capitalise on the robust domestic demand, which is increasing at the rate of 7-9% every year, immediately," JSL CEO Tarun Kumar Khulbe said.
CSPL owns a 0.6 MTPA (metric tonnes per annum) cold rolling mill located in Mundra, Gujarat.
Edited by Jyoti Narayan
