Jindal Stainless Limited (JSL) and Jindal Stainless (Hisar) Limited (JSHL) on Tuesday said that their proposed merger has been approved by their shareholders and creditors as required by the National Company Law Tribunal (NCLT).
The companies now plan to file a second motion application with the Chandigarh bench of NCLT. They had filed the first motion petition in March 2021.
“We are happy that our shareholders and creditors have approved the scheme of arrangement for JSL-JSHL merger by an overwhelming majority,” Abhyuday Jindal, the managing director of Jindal Stainless said in a press statement. The companies hope to complete the merger during the course of this financial year, he said.
The two companies had been demerged in 2015 as part of a financial and operational restructuring exercise to bring down the cost of borrowing. Jindal Stainless had been laden with debt of over Rs 8,500 crore, which had prompted the restructuring.
Two other unlisted companies had also been formed during the demerger in 2015, which are Jindal United Steel and Jindal Coke.
The stock of JSL closed 0.89% lower at Rs 189 on the BSE on Tuesday. JSHL closed 0.78% lower at Rs 369.3. Benchmark Sensex gained 1.37% on Tuesday.