JSW Steel, the flagship company of the diversified JSW Group, will pay a total of Rs 621 crore to the financial creditor of National Steel and Agro Industries (NSAIL) to complete the acquisition.
Further, its wholly owned subsidiary JSW Steel Coated Products will infuse another Rs 8.52 crore by way of loans in NSAIL for settlement of unpaid insolvency resolution process costs and payment towards operational creditors among others, JSW Steel said in a regulatory update. The company intends to complete the acquisition of NSAIL in a month’s time.
Last week, JSW Steel said the resolution plan submitted by JSW Steel Coated Products for NSAIL was approved under the Corporate Insolvency Resolution Process.
NSAIL, which is into steel manufacturing and export, had posted a turnover of Rs 815 crore in FY22.
Separately, JSW Steel has entered into an agreement with Japan’s JFE Steel to conduct a feasibility study for a manufacturing joint venture in India. After the study, the companies will form a 50:50 joint venture to manufacture an entire range of cold rolled grain oriented electrical steel (CRGO) products in in Vijayanagar, Karnataka, JSW Steel said in a statement.
“The JV would further strengthen JSW Steel’s position as India’s leading manufacturer of advanced steel products that lead to reduced CO2 emissions, and creating sustainable steel solutions,” Jayant Acharya, Joint MD & CEO at JSW Steel, said.
JSW Steel signed a comprehensive strategic collaboration agreement with JFE Steel, Japan’s second-biggest steelmaker, in 2009. The Japanese firm subsequently made an equity investment in JSW Steel.