Jindal Steel & Power Limited (JSPL) has announced the successful acquisition of Allied Strips Limited (ASL) through its wholly owned subsidiary, Jindal Steel Odisha Limited (JSO). The acquisition, which was completed as of April 3, 2025, sees ASL becoming a fully owned subsidiary of Jindal Steel & Power Limited. This move is part of JSPL's strategy to expand its product offerings in the steel manufacturing sector and to achieve greater synergies between its operations.

Key Details of the Acquisition

The acquisition of Allied Strips Limited is set to bolster JSPL’s market position by adding new capabilities in steel production. The consideration for the deal amounts to ₹217.53 crore in cash and includes the following key elements:

1. Acquisition of 100% equity in ASL

2. Purchase of optionally convertible debentures issued by ASL

3. Novation of unsecured intercompany debt between ASL and the selling entity

As part of the terms of the deal, ₹50 lakh of the total consideration has been withheld and will be paid once certain conditions are met.

Background on Allied Strips Limited (ASL)

Allied Strips Limited, a public company incorporated on August 5, 1992, specializes in the manufacturing and supply of steel products. Its main products include:

• Hot rolled coils

• Cold rolled coils

• Cold Rolled Close Annealed (CRCA) steel

The company serves a range of sectors, including the automotive, white goods, and precision tubes industries. It operates a facility in Bahadurgarh, Haryana, with a capacity to process over 3,00,000 metric tonnes of HR coil per annum.

Turnover for ASL in FY24 stood at ₹4.84 crore, with no turnover in the previous two years. The company is based in India and has been a part of the steel manufacturing sector for over three decades.

Impact of the Acquisition

The acquisition of Allied Strips Limited will significantly enhance JSPL's product portfolio and create valuable synergies with its existing steel manufacturing operations. For instance, the steel produced in Jindal Steel Odisha Limited (JSO) can now be used as a raw material in Allied Strips Limited, facilitating a more integrated supply chain.

Furthermore, the acquisition positions JSPL to leverage ASL’s capacity and expertise in the steel product sector, increasing its overall production potential and market share.

Regulatory and Compliance Details

In line with the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, Jindal Steel & Power Limited has filed this disclosure with the BSE and the NSE to keep the shareholders and the market informed about the acquisition. The disclosure includes detailed information about the acquisition’s impact, the consideration structure, and the future business strategy post-acquisition.

This acquisition is not classified as a related party transaction, and the promoter or promoter group of JSPL does not have any interest in Allied Strips Limited. The transaction was conducted at arm’s length and in full compliance with regulatory norms.

Conclusion

Jindal Steel & Power Limited’s acquisition of Allied Strips Limited marks a strategic expansion in its steel manufacturing capabilities. The integration of ASL into JSPL’s operations will enhance the company’s product range, particularly in steel products used across industries such as automotive and consumer goods. With this acquisition, JSPL further strengthens its position in the Indian steel market and looks to explore new synergies and operational efficiencies in the coming years.

This acquisition, completed in the first quarter of 2025, reflects JSPL's commitment to expanding its footprint and reinforcing its role as a key player in the steel sector.

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