Jindal Stainless buys remaining 46% stake in Chromen Steels for Rs 278 crore

Jindal Stainless on Monday said it has acquired the remaining 46 per cent stake in Chromen Steels Private Limited (CSPL) for Rs 278 crore. As a result, CSPL has become a wholly-owned subsidiary of the company with effect from June 15, 2024, Jindal Stainless Limited (JSL) said in a release.

“Jindal Stainless has acquired the remaining 46 per cent equity stake in Cromeney Steels Pvt Ltd. The transaction involves a total expenditure of Rs 278 crore, which includes equity transfer and payment of shareholders’ loan,” the statement said.

Jindal Stainless had earlier acquired 54 per cent equity stake in CSPL through an indirect acquisition deal for Rs 1,340 crore.

The acquisition of CPSL will result in a loss of approximately Rs 1,618 crore to JSL.

JSL CEO Tarun Kumar Khulbe said, “Acquisition of 100 per cent equity stake in Cromony will help us move up the value chain. Since we expect the facility to become operational soon, this strategic move will enable the company to immediately benefit from the strong domestic demand, which is growing at 7-9 per cent every year.”

CSPL has a 0.6 MTPA cold rolling mill located at Mundra, Gujarat.