The Chandigarh Bench of the NCLT (National Company Law Tribunal) has convened a meeting of the shareholders and creditors of Jindal Stainless Limited and Jindal Stainless (Hisar) Limited for approving the scheme of merger of the two companies.
The first motion petition was filed with NCLT in March, 2021 after the board of JSL and group companies had approved the merger scheme in December 2020.
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Abhyuday Jindal, MD Jindal Stainless said, “Work is in full swing to complete the procedural requirements within the stipulated timeline”.
The company expects the completion of the merger in H1 FY23. The standalone revenue of the merged entity for Q3FY22 stands at ₹8,880 crore with an EBITDA of ₹1,261 crore.
The merger of Jindal Stainless (Hisar) in Jindal Stainless Ltd will propel the later among the top 10 global stainless steel producers even on its current capacity level.
The merged entity will have diversified end-to-end product portfolio of over 120 stainless steel grades with a 360-degree reach to customers from all segments.
Jindal Stainless has largely been focussed on high volume stainless steel offerings and has been catering to sectors such as railway, architecture, automobiles and infrastructure; meanwhile Jindal Steel (Hisar) is focussed on high-margin specialised product division and was catering to value-added segments namely precision strips, razor blade and coin blanks and other niche offerings.
