Iron & Steel Company Has Fully Acquired Shareholding in Allied Strips Limited; Details Inside
The stock gave multibagger returns of over 1,200 per cent in 5 years whereas the BSE Sensex Index is up by 173 per cent.
Jindal Steel & Power Ltd (JSP), via its subsidiary Jindal Steel Odisha Limited (JSO), has fully acquired Allied Strips Limited (ASL) for Rs 217.53 crore in cash, with Rs 50 lakhs withheld pending certain conditions. ASL, a public company established under the Companies Act, 1956, specializes in manufacturing and supplying steel products, including hot rolled coils, cold rolled coils, and CRCA steel, serving industries like automotive and white goods. Located in Bahadurgarh, Haryana, ASL possesses a processing capacity of over 300,000 metric tonnes of HR coil annually. Notably, ASL's turnover for FY24 was Rs 4.84 crore, while it was nil for FY23 and FY22.
This acquisition, involving 100 per cent equity in ASL, the optionally convertible debenture, and novation of intercompany debt, is not a related party transaction, and no promoter group interest exists. The strategic move aims to expand JSO's product portfolio and create synergies by using JSO's steel as raw material for ASL. The acquisition, which required no governmental approvals, has been completed. ASL's core business aligns with manufacturing steel-based products, and its presence is limited to India.
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Jindal Steel & Power is a major Indian steelmaker with a strong presence in mining and power generation. The company has a global footprint, with subsidiaries in Australia, Botswana, Indonesia, Mauritius, Mozambique, Madagascar, Namibia, South Africa, Tanzania, and Zambia. The company has a market cap of over Rs 90,000 crore.
The stock’s 52-week high is Rs 1,097.10 per share and its 52-week low is Rs 723.95 per share. The stock gave multibagger returns of over 1,200 per cent in 5 years whereas the BSE Sensex Index is up by 173 per cent. Investors should keep an eye on this Large-Cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.