India's NCLT Approves Merger Of JSL And JSHL To Join Top 10 Global Stainless Steel Producers

India's NCLT approves merger of JSL and JSHL to join top 10 global stainless steel producers

The merger of Jindal Stainless Hisar Limited (JSHL) and Jindal Steel Limited (JSL) will propel the latter into the top ten stainless steel producers in the world.

The National Company Law Tribunal (NCLT) Chandigarh Judge of India's National Company Law Tribunal has called a meeting of shareholders and creditors of JSL and JSHL to approve the merger of the two companies.

The first motion application was submitted to NCLT in March 2021, following the approval of the proposed merger by JSL and the Group Board of Directors in December 2020.

Abhyuday Jindal of Jindal, Maryland, said: “We are working hard to complete the program requirements within the stipulated time frame. As we expand, the combined company JSL will have an annual production capacity of 2.9 million tons by fiscal 2023, which will become the One of the largest stainless steel producers in the world."

The company expects the merger to close in the first half of fiscal 2023. In the third quarter of fiscal 2022 (October-December 2021), the combined entity had stand-alone revenue of EUR 8.88 billion and EBITDA of EUR 1.261 billion.

Combined with the current capacity levels of the two companies, the merger will propel JSL to one of the top ten stainless steel producers in the world, with a diversified product portfolio of over 120 stainless grades, 360-degree coverage of customers in all market segments.

Jindal Steel Limited (JSL) mainly focuses on high-volume stainless steel products and has been working in the railway, construction, automotive and infrastructure industries.

Jindal Stainless Hisar Limited (JSHL) focuses on the high-margin specialty products segment and focuses on high-value-added segments, namely precision bars, razor blades and coin blanks, and other niche products.