Jindal Stainless Acquires Chromeni Steels for Rs 278 Cr
Jun 17, 2024 20:53
Jindal Stainless has acquired the remaining 46% stake in Chromeni Steels Private Ltd. for Rs 278 crore, making it a wholly-owned subsidiary. The acquisition aims to strengthen Jindal Stainless' position in the stainless steel market.
New Delhi, Jun 17 (PTI) Jindal Stainless on Monday said it has acquired the remaining 46 per cent 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 per cent 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 per cent 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.
JSL CEO Tarun Kumar Khulbe said, "The acquisition of a 100 per cent 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 per cent every year, immediately".
CSPL owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat.
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