JSW Steel gets nod for scheme of amalgamation
The company's board approved the Scheme of Amalgamation of Dolvi Minerals and Metals Private Limited (DMMPL), Dolvi Coke Projects Limited (DCPL), JSW Steel Processing Centres Limited (JSPCL) and JSW Salav with JSW Steel.
The purpose of amalgamation as per the company's presser on the matter is to take advantage of operational synergies with the existing business of JSW Steel and to reduce the number of legal entities in the Group’s structure which would automatically create a more streamlined organization.
This would, in turn, reduce the hassle of multiple legal and regulatory compliances for the company. Also, duplication of communication and coordination between entities would be avoided.
The merger would also bring-in cost-optimization on account of easier book-keeping and administrative tasks and consolidation of financials.
Currently, DMMPL, JSPCL and JSW Salav are wholly-owned subsidiaries of JSW Steel. On the other hand, DCPL is a wholly-owned subsidiary of DMMPL.
On Thursday, the shares of JSW Steel opened at Rs. 311.60 per share and hit a high and low of Rs. 318.95 per share and Rs. 308.70 per share, respectively. The stock closed at Rs. 317.25 per share, up 2.97 per cent.