The Jindal Stainless group has received the nod from the bourses for the scheme of amalgamation of Jindal Stainless (Hisar) Ltd (JSHL) into Jindal Stainless Ltd, company officials said.
The merger will lead to a simplified capital structure, expanding the turnover of the combined business to Rs 20,000 crore, they said.
The officials told PTI that the merger process is likely to be completed in the second half of 2021-22.
The group had in 2015 demerged the entity to unlock value and debt management.
Jindal Stainless exited from the Corporate Debt Restructuring framework with effect from March 31, 2019.
The company will now have to seek the NCLT nod for the amalgamation.
As per the approved share-swap ratio, 195 equity shares of JSL will be issued for every 100 equity shares of JSHL.
The merger of JSHL into JSL will create a mega stainless steel entity that will be among the top 10 stainless steel companies in the world, and the largest in India, the company officials said.
Source: Economic Times