Creating history
Steel

Creating history

Known as a turnaround specialist, Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel recently created history. He bought the controlling 41 per cent stake in Ispat Industries, a company owned by Pramod and Vinod Mittal, for $3 billion. The deal will make Jindal the largest private sector steel maker by capacity in India. It is also expected to bring Ispat back to profit after its debts of Rs 7,500 crore are refinanced and Rs 3,100 crore injected as capital expenditure. Ispat, which is to be renamed JSW Ispat Steel, will issue 108.66 crore equity shares on a preferential basis at Rs 19.85 per share for Rs 2,157 crore. JSW will also make an open offer for an additional 20 per cent to the minority shareholders of Ispat at a marginal premium of Rs 20.54, which would entail an additional spending of around Rs 1,200 crore.

Known as a turnaround specialist, Sajjan Jindal, Vice-Chairman and Managing Director, JSW Steel recently created history. He bought the controlling 41 per cent stake in Ispat Industries, a company owned by Pramod and Vinod Mittal, for $3 billion. The deal will make Jindal the largest private sector steel maker by capacity in India. It is also expected to bring Ispat back to profit after its debts of Rs 7,500 crore are refinanced and Rs 3,100 crore injected as capital expenditure. Ispat, which is to be renamed JSW Ispat Steel, will issue 108.66 crore equity shares on a preferential basis at Rs 19.85 per share for Rs 2,157 crore. JSW will also make an open offer for an additional 20 per cent to the minority shareholders of Ispat at a marginal premium of Rs 20.54, which would entail an additional spending of around Rs 1,200 crore.

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