Jindal Stainless Hisar to be merged into Jindal Stainless Ltd

New Delhi [India], December 29 (ANI): Jindal Stainless Hisar Ltd (JSHL) will be merged into Jindal Stainless Ltd (JSL) after the board of directors at both companies on Tuesday accepted recommendations of respective board committees.
As per the approved share swap ratio, 195 equity shares of JSL will be issued for every 100 equity shares of JSHL.
"The merger of JSL and JSHL will induce a simplified capital structure, expanding the turnover of merged business to Rs 20,000 crore, said Managing Director Abhyuday Jindal.
"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 companies in the world," he said in a statement.
"Seamless integration of infrastructure, processes and operational synergies, along with a strengthened balance sheet, will improve financial flexibility," said Jindal.
JSL said the merged entity will present reinvestment opportunities for growth by leveraging ready infrastructure at Jajpur for cost-efficient brownfield expansions.
Post the merger, JSL will be the single listed entity on the stock exchanges and the promoter holding will be 57 per cent while the remaining 43 per cent will be held by the public. As per the proposed structure, the mobility business of JSL Lifestyle Ltd, a domestic subsidiary of JSHL, will be merged into JSL.
Non-mobility businesses will be carved out as a separate new entity, named Jindal Lifestyle Ltd. Post restructuring, Jindal Stainless Steelway Ltd (JSSL) and Jindal Lifestyle Ltd 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 merger process is expected to be completed in H2 FY22. The merger is subject to approvals from statutory authorities, shareholders, creditors and National Company Law Tribunal. (ANI)