Home » Jindal Stainless (Hisar) to merge into group company Jindal Stainless
The appointed date has been fixed as April 1, 2020.
Jindal Stainless (Hisar) (JSHL) will be merged into group company Jindal Stainless (JSL), the management announced on Tuesday. “The merger of JSL and JSHL will induce a simplified capital structure, expanding the turnover of the merged business to around Rs 20,000 crore. With 1.9 million tonnes per annum melt capacity, the merged entity will be the only Indian company in the league of top 10 stainless steel firms in the world,” said Abhyuday Jindal, MD, JSL & JSHL.
The share swap ratio will be 1:1.95 (JSHL-JSL). The appointed date has been fixed as April 1, 2020. While shares of JSL on Tuesday settled flat at Rs 80.05 apiece in the BSE; JSHL scrip fell by 2.79% to Rs 148.05 per share.
Post the merger, JSL will be the single listed entity on the stock exchanges and the promoter holding will be around 57%, while the remaining 43% will be held by the public.
As per the proposed structure, the mobility business of JSL Lifestyle, a domestic subsidiary of JSHL, would be merged into JSL. Non-mobility businesses would be carved out as a separate new entity, named Jindal Lifestyle. Post-restructuring, Jindal Stainless Steelway(JSSL) and Jindal Lifestyle will operate as Indian subsidiaries, while overseas operational subsidiaries of JSL in Spain and Indonesia will continue to operate as business units of merged JSL, the company said.
The merger process is expected to be completed in the second half of 2021-22. The merger is subject to approvals from statutory authorities, shareholders, creditors, and NCLT.
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