JSW Steel will acquire flat-steel producer National Steel and Agro Industries (NSAIL) through the bankruptcy court for a cash consideration of Rs 621 crore through its wholly-owned subsidiary JSW Steel Coated Products, the company informed stock exchanges on Monday.
The steelmaker had got the approval from the Mumbai bench of the National Company Law Tribunal (NCLT) for its resolution plan last week, and the acquisition will be completed within 30 days of the effective date as in the resolution plan.
National Steel and Agro Industries, a manufacturer and exporter of steel from central India, had a turnover of Rs 815 crore in 2021-22 (April-March), and is primarily known for its flat steel products which include cold rolled coils, galvanised corrugated sheets, colour coils and pre-painted profile sheets etc.
This buyout is seen bringing synergy in terms of operations, procurement, marketing and sales for JSW Steel, it said.
In accordance with the resolution plan, shares of National Steel and Agro will now be delisted from the exchanges.
JSW Steel has, in the past, acquired Bhushan Power and Steel and Monnet Ispat and Energy through the bankruptcy route as well.
It currently has the capacity to produce 27 million tonne of steel in India.