The Sajjan Jindal-controlled Jindal Iron and Steel Company (Jisco) and its subsidiary, Jindal Vijaynagar Steel (JVSL), are planning to consolidate their businesses to create a Rs 4,000 crore-plus entity.
As per the plan, the parent, Jisco, will be merged into JVSL in a reverse merger. The boards of the two companies are meeting tomorrow to approve the recast plan.
The group has been toying with the idea of a reverse merger of Jisco into JVSL for quite some time, but the plan was delayed due to tax issues.
The recast will create an integrated steel company with products ranging from iron ore to hot-rolled coils and value-added galvanised products.
