The Board of Directors of Jindal Stainless Limited and Jindal Stainless (Hisar) Limited have accepted the recommendations of the respective Board Committees and approved the merger of Jindal Stainless (Hisar) Limited into Jindal Stainless Limited. As per the approved share swap ratio, 195 equity shares of Jindal Stainless Limited will be issued for every 100 equity shares of Jindal Stainless (Hisar) Limited.
Post the merger, Jindal Stainless Limited will be the single listed entity on the stock exchanges and the promoter holding will be about 57%, while the remaining 43% will be held by the public. As per the proposed structure, the mobility business of JSL Lifestyle Limited, a domestic subsidiary of Jindal Stainless (Hisar) Limited, would be merged into Jindal Stainless Limited. Non-mobility businesses would be carved out as a separate new entity, named Jindal Lifestyle Limited. Post restructuring, Jindal Stainless Steelway Limited and Jindal Lifestyle Limited will operate as Indian subsidiaries, while overseas operational subsidiaries of Jindal Stainless Limited in Spain and Indonesia will continue to operate as business units of merged Jindal Stainless Limited. With the appointed date of April 1, 2020, the merger process is expected to be completed in H2 FY22. The merger is subject to approvals from statutory authorities, shareholders, creditors, and NCLT.
Jindal Stainless (Hisar) Limited is an integrated stainless steel manufacturer with facilities starting from melting, casting, and hot rolling to cold rolling and other value additions. Jindal Stainless (Hisar) Limited has a melt capacity of 0.8 million tonnes per annum. Jindal Stainless Limited is the largest manufacturer of stainless steel in India with a capacity of 1.1 million tonnes per annum. Merger of Jindal Stainless (Hisar) Limited into Jindal Stainless Limited will create a mega stainless steel entity that will be among the top 10 stainless steel companies in the world and the largest stainless steel company in India.