The flagship firm of the globally renowned JSW Group, JSW Steel Ltd., has reportedly hit the headlines for its proposed acquisition of a part of DMMPL. If sources are to be believed, the steel manufacturer made an announcement that it has purchased an approximate 60.004% of DMMPL’s share capital.
As per authentic reports, JSW Steel, prior to this supposed acquisition, already held a share of around 39.996% of DMMPL’s share capital. With this agreement, JSW Steel has been declared as the sole owner of DMMPL, the latter now being a wholly-owned business of the steel magnate. Reliable sources claim that JSW Steel currently accounts for 100% of the paid-up and issued equity share capital of DMMPL.
Incidentally, the acquisition of the 60% stake, according to The Business Standard, has been sealed at a valuation of INR 1.09 billion (in cash) from the existing investors.
For the uninitiated, DMMPL (Dolvi Minerals and Metals Private) is a firm operating as a wholesaler, retailer, as well as trader for metallic and non-metallic minerals, inclusive of iron steel, coal and lignite, and coal products.
As per sources familiar with the matter, the acquisition is slated to emerge rather beneficial for the steelmaker in terms of raw material security, since DMMPL’s arm – called Dolvi Coke Projects, will now be supplying coking coal to JSW’s Dolvi facility. Given that iron ore and coking coal constitute two of the most pivotal raw materials in steelmaking, experts vouch that JSW Steel will have much to gain from this takeover.
Apparently, the acquisition may also prove to be rather crucial for the steel conglomerate with respect to its organic expansion plans. Sources claim that JSW seems to have an elaborate expansion plan that includes capacity additions at its units in Dolvi and Vijayanagar.
For the record, JSW Steel is presently one of the largest steel manufacturing firms across the Indian sub-continent, boasting of operational production facilities in Maharashtra and Karnataka, renowned for manufacturing long steel, flat steel, and crude steel products.