JSW Steel to have controlling stake in Ispat Industries

by khalid on 23/12/2010 · 0 comments

JSW Steel Limited is India’s third largest steel producer. The company Management has decided to acquire controlling stake in Ispat Industries. JSW plans to buy this stake in Ispat Industries for $476 million ( Rs. 2157 crore ) and after this deal it will become India’s largest steel producer with a combined capacity of 14.3 mtpa by March 2011. Ispat Industries will issue, on a preferential basis, 108.66 crore equity shares at Rs. 19.85 per equity share for a consideration of Rs. 2157 crore. In addition, JSW will make an open offer to the minority shareholders of Ispat Industries as per SEBI guidelines.

Ispat Industries founder will hold 26 per cent stake in the company post the JSW deal. The new entity will be called JSW Ispat Steel Limited.

Ispat Industries Limited is controlled by Pramod and Vinod Mittal, the brothers of the world’s fifth richest man, billionaire Lakshmi Mittal, who heads the world’s largest steelmaker Arcelor Mittal. Lakshmi Mittal branched out on his own in 1976 due to differences with the family.

Ispat has posted losses for the past five years except for fiscal year 2008. Its net loss narrowed to Rs 320 crore in the year-ended March 2010 compared with a loss of Rs 690 crore in 2008-09 year.

Share’s Data :-
BSE Code : 500228
Market Cap : Rs 25,987.80 Crores
JSW Steel Limited share’s CMP is Rs 1,165.40 on 23rd Dec 2010.

Stay tuned to BelltheBull Blog for more news on JSW Steel Limited !

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