JFE Steel Corporation has hiked holding in JSW Steel to 15 per cent from 14.99 per cent by partly converting the global depositary receipts issued by JSW Steel in 2010.
Affiliate
“JSW Steel will become an equity-method affiliate of JFE Steel from this quarter based on the ownership increase and JFE Steel's current seating of a part-time director on JSW Steel's board,” said JFE Steel in a statement on its Web site.
The GDR conversion does not call for an open offer for JSW Steel shares as SEBI last year hiked the initial trigger threshold for an open offer to 25 per cent from 15 per cent.
GDRs issued
JSW Steel had raised Rs 462 crore by issuing 30,85,814 GDRs with no voting rights to JFE Corporation of Japan in 2010. Earlier, JFE Steel had bought 14.99 per cent stake in JSW for Rs 4,800 crore.
Shares of JSW Steel were up 1.83 per cent at Rs 828 on Tuesday.