Jindal Steel & Power Limited (JSPL) has announced the acquisition of Allied Strips Limited (ASL) through its wholly owned subsidiary Jindal Steel Odisha Limited (JSO), marking a strategic move to expand its value-added product portfolio. The total cash consideration for the transaction is ₹217.53 crore, and ASL will now operate as a subsidiary of JSPL.
ASL, a public company incorporated in 1992, is based in Bahadurgarh, Haryana, and specializes in manufacturing steel products such as hot rolled coils, cold rolled coils, and CRCA steel, which are widely used across automotive, white goods, and precision tube sectors. The facility boasts an annual processing capacity of over 3 lakh metric tonnes of hot rolled coils.
As per the disclosure to the stock exchanges, the transaction involves:
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Acquisition of 100% equity in ASL;
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Purchase of optionally convertible debentures issued by ASL;
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Novation of unsecured intercompany debt.
An amount of ₹50 lakh has been held back and will be released post the fulfilment of certain conditions. Importantly, this is not a related party transaction, and JSPL confirmed that neither its promoter group nor group companies held any stake in ASL prior to the deal.
The acquisition aligns with JSPL’s ongoing strategy to integrate downstream steel manufacturing and boost synergies. The steel produced by JSO can now be routed to ASL for further processing, thereby improving operational efficiency and expanding its market footprint.
ASL’s financial performance has been muted in recent years, with a reported turnover of ₹4.84 crore in FY24, and nil revenue in FY22 and FY23. Despite this, JSPL sees potential in leveraging ASL’s capacity and product expertise to strengthen its downstream offerings.