JSW Steel completes ₹750 crore strategic investment in JSW Paints to fuel expansion plans | Mint
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Business News/ Companies / News/  JSW Steel completes 750 crore strategic investment in JSW Paints to fuel expansion plans
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JSW Steel completes ₹750 crore strategic investment in JSW Paints to fuel expansion plans

JSW Steel has completed its strategic investment of INR 750 crore in JSW Paints, acquiring 12.84% of the company's equity capital.

JSW Steel’s steel completed ₹750 crore of strategic investment in JS PaintsPremium
JSW Steel’s steel completed 750 crore of strategic investment in JS Paints

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.

Also Read: Tata Steel, JSW Steel, JSPL see healthy earnings pipelinethough steel price hikes take pause impacted by festival season

“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. 

Also Read: JSW Steel considers 75% interest in Teck's coal business: Report

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.

Also Read: JSW Steel to invest over 5,000 crore on strengthening downstream manufacturing capacity

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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Published: 23 Nov 2023, 08:26 PM IST
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