Steel maker Jindal Stainless Ltd. (JSL) on Monday said it has got approval from India's stock exchanges to restructure its business, a move initiated last December to boost profitability and clear out its debts.
"JSL has received observation letters from BSE and National Stock Exchange on the draft Composite Scheme of Arrangement among Jindal Stainless, Jindal Stainless (Hisar), Jindal United Steel and Jindal Coke and their respective shareholders and creditors," the company said in a regulatory filing with the Bombay Stock Exchange (BSE).
The reshuffling plan will result in creation of a subsidiary on the domestic bourses.
"The company is now taking necessary steps to file the scheme of arrangement with the Punjab and Haryana High Court, for the implementation of the scheme," the filing said.
As per the scheme, JSL has proposed to demerge its ferro alloys and mining divisions and vest them with Jindal Stainless (Hisar).
It will include transferring of stainless steel making facilities in Hisar to Jindal Stainless (Hisar) for a lump sum consideration of over Rs.2,809 crore.
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Earlier, the company said it would involve transfer of a hot strip plant in Odisha to Jindal United Steel by way of slump sale for Rs.2,412.67 crore.
It had also proposed to transfer its coke oven plant in Odisha to Jindal Coke by way of a slump sale for Rs.492.64 crore.
Once the rejig scheme becomes effective, Jindal Stainless (Hisar) would seek listing of its equity shares on both the exchanges and its global depository receipts (GDR) at the Luxembourg Stock Exchange.