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Jindal Steel & Power Limited (JSPL), amongst the largest makers of steel in India, will acquire Allied Strips Ltd (ASL) through its wholly owned subsidiary, Jindal Steel Odisha Ltd.
The ₹217.53 crore all-cash deal, finalised earlier this month, marks a strategic move by JSPL to expand its footprint in the steel products market, with ASL now being a subsidiary of the company.
The acquisition will include the purchase of 100 per cent equity in ASL (10 crore shares), optionally convertible debentures issued by ASL, and the substitution of unsecured intercompany debt.
Notably, ₹50 lakh of the total consideration has been withheld, pending the fulfilment of certain conditions by the seller. Per the announcement, 691 shares remain to be transferred to Jindal Steel Odisha.
Based in Bahadurgarh, Haryana, ASL boasts of a processing capacity of 300,000 metric tonnes (mt) of hot rolled coils annually.
The company serves a wide range of industries, including automotive, white goods, and precision tubes. Despite its significant production capacity, ASL reported a turnover of ₹4.84 crore in FY24, with no recorded turnover in FY23 or FY22.
JSPL, in a notice to the bourses said, the acquisition aligns with its core steel manufacturing business, offering significant synergies.
Steel produced by Jindal Steel Odisha can now be utilised as raw material for ASL, enhancing JSPL’s product portfolio and strengthening its supply chain.
“The acquisition of ASL will help Jindal Steel expand its offerings and capitalise on the growing demand for specialised steel products,” the company stated in its disclosure.
The transaction, which requires no governmental or regulatory approvals, was executed at arm’s length and does not involve related party transactions. JSPL confirmed that neither its promoters, promoter group, nor group companies hold any interest in ASL.
Published on April 4, 2025
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