On Monday, Jindal Stainless announced that it has purchased the remaining 46% stake in Chromeni Steels Private Ltd (CSPL) for ₹278 crore. This makes CSPL a fully-owned subsidiary of Jindal Stainless as of June 15, 2024.
Details of the Acquisition:
- Jindal Stainless previously owned 54% of CSPL, which it acquired for ₹1,340 crore.
- The total cost for Jindal Stainless to fully acquire CSPL is about ₹1,618 crore.
- The ₹278 crore transaction includes payments for equity transfer and shareholder debt.
CEO’s Statement:
Tarun Kumar Khulbe, the CEO of Jindal Stainless, said that owning 100% of Chromeni Steels will help the company move up the value chain. With the facility expected to be operational soon, this strategic move allows Jindal Stainless to benefit from the strong domestic demand for stainless steel, which is growing at 7-9% annually.
About Chromeni Steels:
Chromeni Steels owns a 0.6 million tonnes per annum (MTPA) cold rolling mill located in Mundra, Gujarat.
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