Jindal Stainless Ltd. has completed the sale of its entire 26% stake in Jindal Coke Ltd. for Rs 195 crore on Thursday, marking the company's complete exit from JCL.
JSL's board of directors had approved the divestment in principle on Jan. 18, 2024. Following this, on April 3, JSL sold a 4.87% stake in JCL to JSL Overseas Ltd., according to an exchange filing.
JCL recently offered to buy back its shares from shareholders, including JSL, which decided to sell its remaining 21.13% stake in the buyback. On Thursday, the company was informed that all its tendered shares had been accepted, it added.
Out of the total consideration of Rs 194.9 crore, Rs 36.5 crore was towards partial divestment of its equity stake to JSL Overseas and Rs 158.4 crore was towards shares tendered and accepted in the buyback offer by JCL, which is part of the promoter group of the company.
As of March 31, 2024, JCL's turnover was Rs 1,573 crore. JCL has ceased to be an associate of the company, it added.
JSL's consolidated net profit fell 5.4% year-on-year in the third quarter of the current fiscal. The company posted a bottom line of Rs 654.8 crore in the quarter ended December.
Shares of JSL closed 6.27% higher at Rs 651.9 apiece on the National Stock Exchange, compared to a 0.93% advance in the benchmark Nifty. The stock has fallen 6.75% in the last 12 months.
Eleven analysts tracking the company have a 'buy' rating on the stock, according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 26.3%.
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