Jindal Stainless acquires remaining 74 pc stake in JUSL for Rs 958 crore

Jindal Stainless, it paid Rs 958 crore to acquire the remaining 74% of Jindal United Steel Limited, which is situated in Odisha. According to a business release, Jindal United Steel Limited (JUSL), which JSL previously possessed a 26% share in, is now a wholly owned subsidiary of JSL. For a cash payment of Rs 958 crore, JSL has now bought the final 74% equity holding in JUSL. According to JSL, the purchase turns JUSL into a fully owned subsidiary.

JUSL has been running a cold rolling mill with a capacity of 0.2 MTPA as well as a hot strip mill (HSM) with a capacity of 1.6 MTPA. At Jajpur in Odisha, it is also undergoing capacity development to accommodate up to 3.2 MTPA. According to Abhyuday Jindal, managing director of JSL, "Given the strong outlook on stainless steel and the association of JUSL and JSL, the board of directors of JSL decided to consolidate all the critical facilities of stainless steel manufacturing under one umbrella."

This merger will increase the synergies between the two businesses and create a preferable governance structure, increasing the value for all parties involved. The acquisition has already received approval from the JSL board of directors and shareholders.

The largest stainless steel producer in the nation, Jindal Stainless, has an annual melt capacity of 2.9 million tonnes (MT). In Haryana and Odisha, it has two manufacturing facilities for stainless steel.