JSW Ispat Special Steel (formerly Monnet Ispat), a joint venture between private equity Aion and JSW Steel has hived off its Raipur plant in Chhattisgarh, mining facilities at Kanker, associated coal washery operations at Patherdih and other assets to Mivaan Steels which will become a wholly-owned subsidiary through a scheme of arrangement.

The transfer of asset is being done through a slump sale valued at ₹450 crore.

The transaction is expected to be completed in 30 days. The asset transfer is aimed at value unlocking at later stage, said an analyst.

JSW Ispat Special Steel and its subsidiaries had a consolidated turnover of ₹4,188 crore in FY21.

Mivaan Steel was recently formed and the entire equity share capital will be acquired by JSW Ispat.

JSW Steel, which owns JSW Ispat, plans to merge Monnet Ispat next fiscal after buying out its joint venture partner.

In 2018, JSW Steel and Aion Investment acquired about 88 per cent in the Monnet Ispat and Energy for ₹2,875 crore through an insolvency driven process which settled ₹11,000 crore defaulted by Monnet Ispat.

The Aion-JSW consortium was the sole bidder for the asset in Chhattisgrah

The manufacturing facilities at Raipur comprises of a sponge iron manufacturing plant of 0.3 million tonne per annum (mtpa), ferro alloy plant and steel manufacturing plants of 0.25 mtpa.

The Raipur plant produces commodity grade steel that caters to the structural and construction sectors.

The focus of the other facility at Raigarh is on special steel products catering to automotive, high manganese grades, cold rolling and API grades sold in domestic and export markets.

Published on February 17, 2022