JSW Steel to acquire insolvent NSAIL for Rs 621 crore

23 May 2023 , 11:37 AM

JSW Steel, through its wholly-owned subsidiary JSW Steel Coated Products, has announced the acquisition of National Steel and Agro Industries (NSAIL), a flat-steel producer, via the bankruptcy court.

The transaction will involve a cash payment of Rs 621 crore.

Following the approval of its resolution plan by the Mumbai bench of the National Company Law Tribunal (NCLT) last week, the steelmaker has received the green signal for the acquisition. As per the resolution plan, the completion of the acquisition is slated to take place within 30 days from the effective date.

Renowned for its production and export of steel, National Steel and Agro Industries, located in central India, achieved a turnover of Rs 815 crore during the fiscal year 2021-22 (April-March). The company specializes in manufacturing various flat steel products such as cold rolled coils, galvanized corrugated sheets, color coils, and pre-painted profile sheets, among others.

According to JSW Steel, this acquisition is expected to generate operational, procurement, marketing, and sales synergies for the company.

As per the resolution plan, the shares of National Steel and Agro will be removed from the stock exchanges, following the delisting process.

At around 11.21 AM, JSW Steel was trading at Rs 709.90, up by 0.75% against the previous close of Rs 704.60 on NSE. The counter touched an intraday high and low of Rs 711.90 and Rs 702.50 respectively.

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