JSW Steel successfully completed the last tranche of ₹750 crore of strategic investment in JSW Paints, the Indian steel maker announced on Thursday. The investment was planned to be made in 3-4 instalments in last three years to fuel JSW Paints’ expansion plans.
The flagship company of JSW Group, had announced to invest ₹750 crore in JSW Paints in July 2021. The company had invested ₹300 crore in JSW Paints in its first instalment in 2021. On Nov 22, it made the last instalment of ₹75 crore to complete its strategic investment.
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“We would now like to inform you that with the last tranche of investment of INR 74,99,99,903 made on November 22, 2023, the Company has completed making the entire investment of INR 750,00,00,000 in JSW Paints and has been intimated by JSW Paints today that it has on November 22, 2023,” said the company in its stock filing on Thursday.
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With the final payment of ₹75 crore, JSW Steel now holds 2,94,82,565 equity shares in JSW Paints, representing 12.84% of the issued and paid-up equity capital of JSW Paints.
“Post this allotment, the Company holds 2,94,82,565 equity shares in JSW Paints, representing 12.84% of the issued and paid-up equity capital of JSW Paints (11.85% on a fully diluted basis),” said the company in its stock filing.
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This is for your information and in compliance with Regulation 30 of the Securities Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015.
JSW Steel shares closed marginally higher at ₹775.55 per share on BSE on Thursday.
One of the main reasons behind the steelmaker to fund the paint company was the technology collaboration and innovation Jindal Paints would bring to JSW Steel. The move would also lead to strong ripple effect on the consumer brands of steel, JSW Paints Ltd’s managing director Parth Jindal told Mint in 2021.
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Updated: 23 Nov 2023, 09:16 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
