JSW Steel to hike stake in arm for Rs 35 cr

The steel major will acquire 1.32 crore equity shares, representing 26.45% paid up equity, of JSW Vallabh Tinplate (JSW VTPL) from the existing third party shareholders in one or more tranches for Rs 35 crore.

Consequently, on closing of the transaction, JSW VTPL will become a wholly-owned subsidiary of JSW Steel. The steel major's direct and indirect (through its wholly owned subsidiary Vardhman Industries) shareholding in JSW VTPL will increase from 73.55% to 100%. The deal is expected to be completed by 31 March 2021.

JSW VTPL has established itself as a quality manufacturer of tinplate and is well recognised and accepted by customers both in domestic and overseas market. It hasa 1,00,000 MT per annum tinplate manufacturing facility in Beopror Village, in Punjab.

On a consolidated basis, the steel major's net profit declined 37.1% to Rs 1,595 crore on 8.5% increase in net sales to Rs 18,662 crore in Q2 September 2020 over Q2 September 2019.

Shares of JSW Steel rose 0.75% to Rs 343.35 on BSE. JSW Steel, a flagship company of the JSW Group, is an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

Powered by Capital Market - Live News