JSW Steel has completed an investment of ₹750 crore in the Group company JSW Paints as promised in July, 2021.
Following the investment, JSW Steel owns 2,94,82,565 equity shares in JSW Paints, representing 12.84 per cent of the
issued and paid-up equity capital of JSW Paints.
“We would like to inform that with the last tranche of investment of ₹75 crore made on November 22, the company has completed making the entire investment of ₹750 crore in JSW Paints and JSW Paints was intimated on Thursday,” it said.
The company had decided to make a strategic investment of ₹750 crore in 3-4 tranches between FY22 and FY25.
In July 2021, as part of first tranche, JSW Steel invested about ₹300 crore and subscribed to equity shares equivalent to about 7.5 per cent of the issued and paid-up equity capital of JSW Paints during Q2 of FY22.
The investment of JSW Steel in group’s paint business comes even as Grasim Industries, an Aditya Birla Group, plans to enter the paints business with the launch of its first of the six planned paint plants in March quarter.
Unveiled under ‘Birla Opus’ brand, Grasim targets to offer a full suite of high-quality products in the decorative paints segment and emerge the second largest in decorative paint business with phased launch of paint plants.