JSW Steel Coated Products (JSWSCPL), a subsidiary of JSW Steel has inked an agreement with Ranchi-based start-up Ayena Innovation to acquire a 31 per cent stake in the company by investing Rs 5.99 crore.
The prospective acquisition is expected to get completed within 45 days from the execution date of the agreement.
In a statement, JSW Steel said that this strategic acquisition would help JSWSCPL to explore new opportunities to increase the consumption of coated steel products. Additionally, the subsidiary arm will bolster its retail presence and diversify its customer portfolio through the latest development.
Mumbai-based JSW Steel is the flagship company of JSW Group, which became the second-largest steel manufacturer after the merger of ISPAT steel and Jindal Vijayanagar Steel Limited. On the other hand, JSWSCPL, which emerged in 2013, claims to be the largest exporter of colour-coated steel products. It is a fully-owned subsidiary of JSW steel.
According to a Tofler report, JSWSCPL witnessed a 36.12 per surge in its net profit and an 86.39 per cent increase in its EBITDA. The company has a net worth of over Rs 500 crore.
The statement also added that Ayena is a Department for the Promotion of Industry and Internal Trade (DPIIT) registered start-up that will develop, manufacture and sell modular solutions like modular kitchens.
