NCLT approves merger of Jindal Stainless and Jindal Stainless (Hisar)

Jindal Stainless has received regulatory approval for its merger with Jindal Stainless (Hisar) from the National Company Law Tribunal.

The iron and steel company, in its filing with the exchanges, today said, "This is to inform you that the Hon'ble National Company Law Tribunal, Chandigarh Bench while hearing the Composite Scheme of Arrangement, inter-alia, providing for merger of Jindal Stainless (Hisar) Limited with Jindal Stainless Limited, has on 22nd December, 2022, confirmed that there were no objections to the Scheme, pending from any person, including the sectoral regulators. The company is awaiting the order of the Hon'ble NCLT disposing off the petition.”

“This disclosure is being made in terms of Regulation 30 of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015,” added the filing.

“We are happy that our shareholders and creditors have approved the scheme of arrangement for the JSL-JSHL merger by an overwhelming majority”, said the company’s MD after receiving the shareholders and creditors approval on the merger.

“Post approval of the shareholders and creditors of JSL and JSHL on April 23, 2022, the NCLT, while hearing the second motion application on July 13, 2022, had directed to issue notice(s) to the sectoral regulator(s) for their objection, if any as contemplated by the authorities. The merger is expected to complete in FY23,” the company said.

The two companies had been demerged in 2015 as part of a financial and operational restructuring exercise to bring down the cost of borrowing. Jindal Stainless had a debt of over Rs 8,500 crore, which had prompted the restructuring.

Two other unlisted companies had also been formed during the demerger in 2015 — Jindal United Steel and Jindal Coke.

After the approval, shares of Jindal Stainless traded with a cut of around 1% at Rs 207.65, while Jindal Stainless (Hisar) traded with a cut of over 2% at Rs 373.