Judge Chandigarh of NCLT (national company law Tribunal) has convened the shareholders and creditors meeting of JSL and jshl to approve the merger plan of the two companies.



New Delhi: Honble national company law Tribunal (NCLT), Chandigarh bench announced the detailed order to convene the shareholders and creditors meeting of Jindal stationary limited and Jindal stationary (Hisar) Limited approved the merger plan between the two companies when hearing the first motion petition on February 25, 2022. The first motion petition was submitted to NCLT in March 2021; JSL and the board of directors of the group company approved the merger plan in December 2020.



Commenting on this development, Dr. abhyuday Jindal of Jindal Steinless said: "we have been waiting for this order from NCLT. The work is in full swing to complete the procedural requirements within the specified time. With our expansion, the annual capacity of the combined company will reach 2.9 million tons in fiscal year 23, making us one of the top stainless steel production companies in the world." The merger will take effect on the designated date of April 1, 2020. Considering the current NCLT orders, the company expects the merger to be completed in the first half of fiscal 2023. The independent pro forma revenue of the combined entity in the third quarter of fiscal year 2022 and fiscal year 2022 was INR 88.8 billion and INR 228.96 billion respectively. The corresponding EBITDA figures are INR 12.61 billion and INR 34.44 billion.



The merger of jshl and JSL will create a large stainless steel group, which will promote Jindal stainless steel to be among the top ten stainless steel manufacturers in the world even at the current capacity level.



The combined entity will have a diversified end-to-end product portfolio of more than 120 stainless steel grades, covering customers in all market segments 360 degrees. Although JSL mainly focuses on high-volume stainless steel products and has been actively catering to industries such as railway, construction, automobile and infrastructure, jshl focuses on high-profit professional product departments and has been actively catering to high value-added fields, namely precision strips, razor blades and hard currency blanks and other niche products.



JSLs proximity to ports and raw materials, coupled with jshls strategic facilities in major domestic consumption centers, will take advantage of better operational synergies. In addition, a single entity will have a simplified capital structure, a stronger balance sheet and leverage ratio, which will improve financial flexibility and release value for all stakeholders. (stainless steel and special alloy alliance)