Jindal Stainless acquires remaining 46% stake Chromeni Steels for nearly ₹278 crore

Jindal Stainless would shell out nearly ₹277.9 crore for the 46% stake, which includes payment of roughly ₹188.19 crore towards equity purchase and ₹89.71 crore towards CSPL’s debt.

The acquisition would make Chromeni Steels Pvt Ltd a wholly-owned subsidiary of Jindal Stainless with effect from June 14, 2024.

Jindal Stainless had announced the acquisition of 54% equity stake in CSPL on May 1, 2024, through a structured indirect acquisition deal under which it purchased 100% stake of Evergreat International Investment Pte Ltd, Singapore.

The company had said then that the CSPL acquisition would enable Jindal Stainless to increase its cold-rolled capacity in its product mix. This will strengthen the company’s presence in the value-added segment in the long term, it had added.

The acquisition of the remaining 46% equity stake will further help Jindal Stainless in better control, uniformity of policies and greater synergies between the two companies, it said in a statement on Friday.

CSPL is a private limited company that was incorporated in June 2017. It has a cold rolling mill located in Mundra, Gujarat, with a capacity of around 0.6 million tonnes per annum.

After the announcement, Jindal Stainless shares rose 1% on Friday to hit an intraday high of ₹825 apiece on the NSE. However, the stock pared gains to trade at ₹817.9 apiece, up 0.21%, on the NSE at 1 pm.

The steel producer’s stock has proven to be a consistent performer of late, rallying over 15% in the past one month, 50% in the past six months and a whopping 148% in the past one year.