JSW Steel on Friday said that it will be merging its subsidiaries JSW Ispat Special Products (JISPL) Limited and Creixent Special Steels Limited (CSSL) with and into itself to leverage synergies between the companies and achieve better efficiency.
Shareholders will receive one share of JSW Steel for every 21 shares of JISPL and three shares of JSW Steel for every two shares of Creixent. The company expects to close the transaction within the coming 12 months.
The stock of JISPL gained 7.11% on the BSE on Friday to close at Rs 30.9. JSW Steel closed 0.54% lower at Rs 548.65. Formerly Monnet Ispat & Energy Limited, JISPL was acquired by JSW Steel and its promoters in 2018 through bankruptcy court. CSSL is the holding company of JISPL.
The leading steelmaker reported a 20% year-on-year dip in profit during the January-March quarter on the back of high input costs and a one-time impairment of Rs 710 crore at a US-based subsidiary. The company recorded a consolidated profit of Rs 3,343 crore compared to Rs 4,191 crore in the corresponding quarter last year.
Consolidated revenue grew by 74% to Rs 46,026 crore led by high steel prices in the market. Earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 4% to Rs 8,315 crore. EBITDA margin narrowed by 12 percentage points to 18.1%.
The company has given guidance of consolidated crude steel production of 25 million tonnes for the ongoing financial year. Production was 21.5 million tonnes in FY22.
The company declared a dividend of Rs 17.35 per share.
The board of JSW Steel on Friday also approved raising Rs 7,000 crore through issuance of non-convertible debentures amd Rs 7,000 crore through equity shares and/or convertible securities, as per a regulatory filing.
