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JSW close to buying 45% in Ispat for 2,157 crore

21 Dec 2010 Evaluate

JSW Steel, the flagship company of Sajjan Jindal’s JSW Group, is close to buying a 45% equity stake in Ispat Industries, an ailing steel maker, for 2,157 crore. But the transaction is dependent on Ispat’s lenders, as the Pramod and Vinod Mittal-led company is carrying out a lender-led debt recast.

The institutions, including IFCI, IDBI, ICICI and SBI, which had collectively lent about 7,000 crore to the steel maker, own 11% in Ispat. This could raise institutional shareholding in Ispat to above 35%, bringing down promoter holding to 28% from about 40%. crackcrack

Peers
Company Name CMP
JSW Steel 1230.00
Tata Steel 179.10
Steel Authority 174.00
Jindal Stainless 732.40
APL Apollo Tubes 2119.90
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