Jindal Stainless gains 46% stake in Chromeni Steels for Rs. 278 crore

Jindal Steel acquires remaining 46% stake in Chromeni Steels Private Ltd (CSPL) for Rs. 278 crore.

Jindal Stainless Ltd (JSL) announced in a statement that as of June 15, 2024, CSPL has officially become a wholly-owned subsidiary of the company.

The media release of the company said, “Jindal Stainless acquires remaining 46% equity stake in Chromeni Steels Private Ltd. The transaction entails a total outlay of Rs.278 crore, comprising payment towards equity transfer and payment of shareholders' debt."

Jindal Stainless previously purchased a majority 54% ownership share in CSPL via an indirect acquisition agreement for a total of Rs.1,340 crore. The total purchase of CPSL amounts to approximately Rs.1,618 crore for JSL.

CSPL operates a cold rolling mill situated in Mundra, Gujarat, boasting a capacity of around 0.6 MTPA. Previously, the company had secured a 54% stake in Chromeni Steels by acquiring the entire stake of Evergreat International Investment Pte Ltd, Singapore (EIPL).

This initial acquisition of 54% equity in Chromeni Steels aimed to assist Jindal Stainless in expanding its cold rolled capacity within its product portfolio, thereby enhancing the company's position in the value-added segment over the long run.

The upcoming acquisition of the remaining 46% stake will further enhance operational control, policy consistency, and foster greater synergies between the two entities.

The CEO of JSL,Tarun Kumar Khulbe mentioned, “The acquisition of a 100 per cent equity stake in Chromeni will help us climb the value chain. Since we expect the facility to be operational soon, this strategic move will enable the company to capitalize on the robust domestic demand, which is increasing at the rate of 7-9% every year, immediately".

CSPL possesses a cold rolling mill with a capacity of 0.6 MTPA, situated in Mundra, Gujarat.