JSW Steel has received the Bombay High Court approval for its composite scheme of amalgamation of its group companies JSW Ispat Steel, JSW Building Systems and JSW Steel Coated Products with itself.
The order sanctioning the scheme has been uploaded on the Web site of the High Court, Bombay, on May 7, said JSW Steel in a statement on Wednesday. The certified copy of the order sanctioning the scheme is awaited, said the statement, and added the scheme will become effective only upon receipt of the certified copy of the order of the High Court and on compliance with the requisite formalities.
In January, the two listed companies – JSW Steel and JSW Ispat Steel – received JSW shareholders approval for merger in a court convened meeting in Mumbai.
Shareholders of JSW Ispat Steel will get one share of JSW Steel for every 72 shares held. JSW Steel will issue 1.86 crore new equity shares, thereby, increasing its outstanding shares to 24.17 crore and equity capital to Rs 242 crore from Rs 223 crore.
Sajjan Jindal-owned JSW Steel acquired 41 per cent stake in debt-ridden Ispat Industries for about Rs 2,157 crore from its then promoters Pramod and Vinod Mittal in December 2010, and subsequently, renamed it as JSW Ispat Steel.
Last year, JSW Steel proposed to merge its loss-making subsidiary JSW Ispat with itself to achieve better operational synergy and bring down cost.
The shares of JSW Steel were down one per cent at Rs 712, while JSW Ispat gained 0.11 per cent to Rs 9 on Wednesday.
suresh.iyengar@thehindu.co.in