Punjab and Haryana HC approves Jindal Stainless' rejig plan

KOLKATA: Punjab & Haryana High Court on Monday approved the composite scheme of arrangement among Jindal Stainless Limited and Jindal Stainless (Hisar) Limited and Jindal United Steel Limited and Jindal Coke Limited. This will pave the way for for the restructuring of Jindal Stainless Limited (JSL).

As part of the Scheme, JSL will demerge its business undertakings comprising of the ferro alloys division and mining division to JSHL while JSHL will issue its shares to the JSL shareholders on a proportionate basis. Jindal Stainless Limited will transfer by way of slump sale, the stainless steel manufacturing facilities located at Hisar, Haryana to JSHL for Rs 2809 crore and Jindal United Steel Limited (JUSL) will acquire hot strip mill (HSM) plant by the way of slump sale in Odhisa for Rs 2413 crore. Also, Jindal Coke Limited (JCL) will acquire the coke oven plant by way of slump sale located in Odhisa Rs 493 crore.

The copy of the High Court Order will now be filed with the Registrar of Companies, NCT of Delhi & Haryana and the scheme will be effective from appointed dates specified in the scheme.

Commenting on the development, Rattan Jindal, chairman and managing director, JSL, said: “With the Hon. High Court approving the scheme of arrangement, the scheme will not only be helping unlocking value for all stakeholders of the company to increase its profitability but will also help reduce debt and strengthen the balance sheet. This will also help improving debt serviceability, while increasing capacity utilization and enabling backward integration of the value chain of the company’s Odisha plant”. The current long term debt of the company is around Rs. 8,500 crore, according to a statement issued by JSL.