[vc_row][vc_column][vc_column_text]The National Company Law Tribunal (NCLT) Chandigarh Judge of India’s National Company Law Tribunal has called a meeting of shareholders and creditors of JSL and JSHL to approve the merger of the two companies.
New Delhi: Hon’ble National Company Law Tribunal (NCLT), Chandigarh Bench has announced the detailed order to convene a meeting of shareholders and creditors of Jindal Stainless Limited and Jindal Stainless (Hisar) in the hearing of the first motion petition on 25 February 2022 Limited approves the proposed merger between the two companies. The first motion petition was filed with the NCLT in March 2021; the JSL and group company boards have approved the proposed merger in December 2020.
Commenting on the development, Dr. Abhyuday Jindal of Jindal Stainless said: “We have been awaiting this order from NCLT. Work is in full swing to complete the procedural requirements within the stipulated time frame. As we expand, post-merger The company will have an annual production capacity of 2.9 million tonnes by FY23, placing us among the top stainless steel producing companies in the world.” The merger will take effect on a specified date of 1 April 2020. Taking into account the current NCLT order book, the company expects the merger to close in the first half of fiscal 2023. The combined entity’s stand-alone pro forma revenue for the third quarter of FY22 and FY22 was INR 88.8 crore and INR 228.96 crore, respectively. The corresponding EBITDA figures were INR 12.61 billion and INR 34.44 billion.
The merger of JSHL and JSL will create a large stainless steel group that will propel Jindal into the top 10 global stainless steel producers even at current capacity levels.
The combined entity will have a diversified end-to-end product portfolio of more than 120 stainless steel grades, providing 360-degree customer coverage across all market segments. While JSL has primarily focused on high-volume stainless steel products and has been actively catering to industries such as railway, construction, automotive and infrastructure, JSHL has focused on the high-margin specialty product sector and has been actively catering to high value-added sectors, namely precision bar , razor blades and coin blanks and other niche products.
JSL’s proximity to ports and raw materials, coupled with JSHL’s strategic facilities in major domestic consumption centers, will capitalize on better operational synergies. Additionally, a single entity will have a simplified capital structure, stronger balance sheet and leverage, which will increase financial flexibility and unlock value for all stakeholders.[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_btn title=”About LMM GROUP” link=”url:https%3A%2F%2Fwww.lmmgroupcn.com%2Fabout-lmm%2F|target:_blank”][vc_column_text css=”.vc_custom_1649296177864{margin-top: 50px !important;}”]friendship Link：
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