Jindal Stainless Acquires Remaining 46% Stake In Chromeni Steels, Making It A Wholly Owned Subsidiary

Jindal Stainless Limited, on Friday, June 14, through an exchange filing announced that the Board of Directors of the company has approved the acquisition of the remaining 46 per cent stake in Chromeni Steels Private Limited (CSPL).

This recent acquisition by the company makes CSPL a wholly owned subsidiary of Jindal Stainless Limited from now. This followed the Company's earlier disclosures on May 1, 2024, and June 4, 2024, regarding the acquisition of a 54 per cent equity stake in CSPL.

Financial Snapshot of CSPL

Based on CSPL's audited financials ending March 31, 2024, the authorised share capital of the company is Rs 195 crore, paid-up share capital is Rs 195 crore, as per the regulatory filing.

Transaction Details

The acquisition is a cash consideration amounting to approximately Rs 277.90 crore which includes Rs 188.19 crore for the equity purchase and Rs 89.71 crore towards CSPL’s debt.

Through the regulatory filing, the company added that the acquisition does not fall within the purview of related party transactions. Neither the promoters nor the promoter group or their companies have any interest in the acquisition. The deal was conducted at arm's length.

About CSPL

CSPL is a Private Limited Company which was incorporated on June 20, 2017 and is headquartered in Ahmedabad and operates a cold rolling mill in Mundra, Gujarat, with a capacity of approximately 0.6 million tons per annum (MTPA), as per the exchange filing.

Historical Performance

CSPL's turnover over the last three years:

FY 2023-24: Nil

FY 2022-23: Rs 2.86 crore

FY 2021-22: Rs 5.95 crore

The company operates in the stainless steel industry, a sector characterised by its applications in various value-added segments.

Share performance

The shares of Jindal Stainless Limited on Friday at 3:30 pm IST closed at Rs 812.00, down by 0.51 per cent.