JSW Steel has decided to merge its loss-making subsidiary JSW Ispat with itself to achieve better operational synergy and bring down cost.
The shareholders of JSW Ispat Steel will get one share of JSW Steel for every 72 shares held.
JSW Steel will issue 1.86 crore new equity shares, thereby, increasing its outstanding shares to 24.17 crore and equity capital to Rs 242 crore from Rs 223 crore. JSW Steel will also issue 48.54 crore new 0.01 per cent non-convertible cumulative redeemable preference shares to the preference shareholders of JSW Ispat increasing its preference share capital to Rs 764 crore.
Promoters’ holding in the merged entity will come down to 35.12 per cent from 38.5 per cent and Japanese steel company JFE Steel International’s holding will fall to 14.92 per cent from 15.17 per cent.
The public shareholding will be at 49.96 per cent.
(Details on Page 2)