Jindal acquired Chromeni Steels, the company bought the remaining 46 percent stake for Rs 278 crore.
Jindal Stainless has acquired the remaining 46 per cent stake in Chromani Steels Pvt Ltd (CSPL) for Rs 278 crore. Jindal Stainless Limited (JSL) said in a statement on Monday that after this CSPL has become a wholly owned subsidiary of the company with effect from June 15, 2024. According to the statement, “Jindal Stainless has acquired the remaining 46 percent equity stake in Chromani Steels Pvt. Ltd. “The transaction involves a total outlay of Rs 278 crore, which includes equity transfer and repayment of debt to shareholders.”
54 percent stake was purchased for Rs 1,340 crore
Jindal Stainless had earlier acquired 54 per cent equity stake in CSPL through an indirect acquisition deal for Rs 1,340 crore. The total acquisition cost of CPSL for JSL comes to around Rs 1,618 crore. “The acquisition of 100 per cent equity stake in Chromani will help us move up the value chain,” JSL Chief Executive Officer (CEO) Tarun Kumar Khulbe said.
This plant will be operational soon
Commenting on this, Tarun Kumar Khulbe, CEO, Jindal Stainless, said, “The acquisition of 100% stake in Chromeni will help us move further up the value chain. As we expect this plant to become operational soon, This strategic move will enable the company to capitalize on the strong domestic demand, which is growing at 7-9% every year. This acquisition also underlines our commitment to accelerate growth and maintain our leadership position in the Indian stainless steel market.” Chromeni Steels Pvt. Ltd., a 0.6 MTPA cold rolling mill located at Mundra, Gujarat, will add to Jindal Stainless’s product mix. Will increase the efficiency of cold rolled products.