Jindal Stainless is planning to de-merge its ferro-alloys, coke oven and stainless steel businesses into three different entities via the slump sale route to reduce its mounting debt and to ensure better management of its business verticals. According to the de-merger plan, shareholders of Jindal Stainless will be issued shares by the resulting de-merged company, Jindal Stainless (Hisar), under the share entitlement ratio of 1:1.
The company’s stainless steel business has been hived off to Jindal Stainless (Hisar) for a lump sum of Rs 2,809 crore. Under this, the parent company will part with its stainless steel manufacturing unit at Hisar in Haryana. Jindal United Steel will get the company’s hot strip plant in Odisha for a lump sum of Rs 2,412 crore, while the coke oven plant will go to Jindal Coke for Rs 492 crore.
Jindal Stainless , a part of the $18 billion OP Jindal group is the largest integrated manufacturer of stainless steel in India and is ranked among the top 10 stainless steel manufacturers in the world, with a capacity of 1.8 million tonnes (MT).
