Shareholders, creditors approve Jindal Stainless Steel-JSHL merger

The merger of Jindal Stainless Ltd (JSL) and Jindal Stainless (Hisar) Ltd (JSHL) into a single entity has been approved by the shareholders and creditors of the two firms.

As per the regulatory requirements, the two companies convened meetings of their respective shareholders and creditors for approving the Scheme of Arrangement between the two firms, JSL said in a statement on Tuesday.

"Shareholders and creditors of JSL and JSHL approved the merger 'Scheme of Arrangement' by a majority," it added.

The meetings were organised on April 23 following the order of the National Company Law Tribunal (NCLT), Chandigarh Bench. The companies will now file the second motion application with the NCLT, it said.

"We are happy that our shareholders and creditors have approved the scheme for merger by an overwhelming majority. This is a testimony to their confidence that merger is value-accretive for all stakeholders of both the companies... hope to complete the merger in FY23," JSL's Managing Director Abhyuday Jindal said.

Having a total melting capacity of 0.8 million tonne per annum (MTPA), the Hisar-based JSHL is the largest specialty stainless steel producer in India with a diversified value-added product portfolio.

JSL owns and operates 1.1 MTPA stainless steel plant in Jajpur, Odisha.