Jindal Stainless (JSL) is one of India’s largest stainless steel conglomerates in India and most recently on Tuesday, the Jindal Stainless (Hisar), also known as JSHL has announced to get merged into its parent group, Jindal Stainless.
The decision taken by the companies is will resort to a simplified capital structure and will revaluate the turnover of the merged entity to over INR 20,000 crore, says Abhyuday Jindal, Managing Director, Jindal Stainless and Jindal Stainless (Hisar).
The MD also added that the merged company will have a combined melting capacity of 1.9 million tonnes per annum which together makes the entity, the only Indian conglomerate in the list of Top 10 stainless steel firms across the globe.
According to a report by Financial Express, Post-merger, Jindal Stainless will be the only single entity to be listed on the stock exchanges with 57% shareholding with the promoters and the remaining 43% shall be owned by the public.
Jindal Stainless (JSL) was founded back in the 1970s by Shri Om Prakash Jindal with the vision to remain inspired to innovate and enrich the lives of others. According to the company profile on CrunchBase, the annual turnover of the company as of March 2019 was USD 3.2 billion.
Furthermore, Financial Express mentions in its report that the swap ratio between JSHL and JSL will be 1:1.95, respectively. As per Bombay Stock Exchange, post this announcement, the shares of Jindal Stainless (Hisar) fell by 2.79% at INR 148.05 apiece and Jindal Stainless settled at INR 80.05 per share. As of today, Jindal Stainless is clocked at INR 76.20 on the National Stock Exchange.
The merger report mentions of a proposed structure where a mobility business of Jindal Stainless Lifestyle which is a domestic subsidiary of Jindal Stainless (Hisar) will be included in this merger whereas, the non-mobility business which is JSL Lifestyle will be spun out as a separate new entity. This new entity will be named as Jindal Lifestyle.
According to the mentioned report, post-merger restructuring, non-mobility business, Jindal Lifestyle and Jindal Stainless Steelway (JSSL) will operate as Indian subsidiaries and foreign subsidiaries of Jindal Stainless in Indonesia and Spain shall continue to be part of this merger and its business units shall operate under the merger Jindal Stainless (JSL), the company said on Tuesday.
The merger is subject to approvals from government authorities, statutory, shareholders, NCLT and concerned creditors. According to reports by the Financial Express, the merger is most likely to get concluded in the second half of 2021 or early 2022.