JSW Steel arm to acquire 31% stake in Ayena Innovations

JSW Steel said that its wholly-owned subsidiary, JSW Steel Coated Products (JSWSCPL), has entered into a shareholders agreement and a share subscription agreement to acquire 31% stake in Ayena Innovation for total consideration of Rs 5.99 crore.

Ayena is a start-up registered by the Department for Promotion of Industry and Internal Trade and will be in the business of development, manufacturing, and sales of quick-to-install modular solutions including modular kitchens.

This proposed investment is in line with endeavours of JSWSCPL to explore new avenues to increase consumption of coated steel products. It will enable JSWSCPL to further diversify its customer portfolio mix and enhancing its presence in the retail business.

 

Post-closing of the transaction, JSWSCPL will have 31% equity shareholding in Ayena. The acquisition is expected to be complete within 45 days from the execution date of the agreements.

JSW Steel is primarily engaged in the business of manufacture and sale of iron and steel products. The company's consolidated net profit declined 88.8% to Rs 490 crore despite of 3.2% rise in net sales to Rs 38,678 crore in Q3 FY23 over Q3 FY22.

The scrip was down 0.98% to Rs 726.45 on the BSE.

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