Jindal Stainless Completes Acquisition of Chromeni Steels

On June 14, 2024, Jindal Stainless Limited announced to the stock exchanges its acquisition of Chromeni Steels Private Limited (CSPL). This move follows earlier disclosures made on May 1, 2024, and June 4, 2024, in which Jindal Stainless Limited detailed its acquisition of a 54% equity stake in Chromeni Steels Private Limited through the purchase of a 100% stake in Evergreat International Investment Pte Ltd, Singapore (EIPL).

In a subsequent board meeting held on June 14, 2024, Jindal Stainless Limited’s Board of Directors approved the acquisition of the remaining 46% equity stake in Chromeni Steels Private Limited.

The company stated that this decision effectively transforms Chromeni Steels Private Limited into a wholly owned subsidiary of Jindal Stainless Limited, marking a significant milestone in the company’s strategic expansion efforts within the steel industry.

Jindal Stainless Limited acquired the remaining 46% equity stake in Chromeni Steels Private Limited, a strategic move aimed at enhancing operational control and fostering synergies between the two entities.

Initially acquiring a 54% stake, Jindal Stainless Limited aimed to bolster its cold rolled capacity within its product portfolio, thereby strengthening its position in the value-added segment over the long term. With the acquisition now extending to full ownership, Jindal Stainless Limited anticipates improved governance and policy uniformity across CSPL, facilitating greater alignment of strategic objectives and operational efficiencies between the two companies.

The remaining 46% equity stake was acquired through cash consideration. The total acquisition cost amounted to approximately ₹277.90 crore, which included ₹188.19 crore for the equity purchase and ₹89.71 crore to settle CSPL’s existing debt obligations.

Chromeni Steels Private Limited has a cold rolling mill in Mundra, Gujarat, with a capacity of approximately 0.6 MTPA (Millions of Tonnes Per Annum). The company reported a turnover of ₹2.86 crore in FY 2023 and ₹5.95 crore in FY 2022.

About Jindal Stainless Ltd

Jindal Stainless Ltd is one of India’s leading producers of stainless steel flat products, including Ferritic, Martensitic, Austenitic, Martensitic, and Duplex grades. Its products are widely used in diverse industries, such as automotive, construction, consumer goods and railway sectors.

On June 14, 2024, the share price of Jindal Stainless Ltd opened at ₹815.25, touching the day’s high at ₹825.00, as of 1:04 PM on the NSE.

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