New Delhi, Sep 21 (IANS) The composite scheme of arrangement among the four O.P.Jindal group companies – Jindal Stainless Ltd and Jindal Stainless (Hisar) Ltd and Jindal United Steel Ltd and Jindal Coke Ltd – got the Punjab and Haryana High Court’s sanction on Monday, the company said.
In a statement issued here, Jindal Stainless said as per the scheme it will demerge its business undertakings comprising of ferro alloys and mining divisions to Jindal Stainless (Hisar).
As a consideration, Jindal Stainless (Hisar) will issue shares to shareholders of Jindal Stainless in 1:1 ratio.
Further, Jindal Stainless will also vest its stainless steel manufacturing facilities at Hisar in Haryana to Jindal Stainless (Hisar) for Rs.2,809 crore.
According to the statement, Jindal Stainless will transfer its hot strip mill at Odisha to Jindal United Steel on a going concern basis by way of slump sale basis for Rs.2,413 crore.
On the other hand, the business undertaking of coke oven plant at Odisha will be transferred to Jindal Coke Ltd for Rs.493 crore on slump sale basis.
Jindal Stainless said a copy of the high court order will be filed with Registrar of Companies and the scheme will be effective from appointed dates.
According to Jattan Jindal, chairman and managing director of Jindal Stainless, the scheme of arrangement will help in reducing the company’s debt and also would unlock the value for all stakeholders.
“This will also help improving debt serviceability, while increasing capacity utilisation and enabling backward integration of the value chain of the Company’s Odisha Plant,” he was quoted as saying in the statement.
The current long term debt of Jindal Stainless is around Rs.8,500 crore, the statement said.