Jindal Steel & Power Ltd (JSPL) will acquire the remaining 51 per cent stake in its joint venture JB Fabinfra, from its existing shareholders for a little over Rs 1 crore.
JSPL currently holds 49 per cent stake in the JB Fabinfra Pvt Ltd (JBFAB). After the proposed acquisition, the entity would become a wholly owned subsidiary of the steel major.
"The board of directors of the company at its meeting held on October 9 has approved the acquisition of remaining 10,20,000 equity shares of Rs 10 each for an aggregate amount of Rs 1.02 crore only representing 51 equity stake in JBFAB from its existing shareholders," JSPL said in a regulatory filing on Thursday.
JBFAB is engaged in the business of manufacturing of pre- fabricated structures out of light gauge steel for residential constructions.
"JSPL also has construction materials business vertical bringing all construction materials under one umbrella and acquiring JBFAB manufacturing business will strengthen the existing portfolio," the filing said.