Ispat Industries on Tuesday said it has entered into an agreement with JSW Steel for the preferential allotment of shares worth Rs 2,157 crore to the Sajjan Jindal-led company at a price of Rs 19.85 apiece.
The collaboration will enable the two steel companies to cut costs and share raw material linkages, Ispat Industries Executive Director Anil Surekha, who was in Kolkata for the company's annual general meeting, told reporters.
Following the transaction, the company will be renamed JSW Ispat Steel, he said.
Surekha, however, did not clarify what JSW Steel's stake would be in the company after the transaction.
In a filing to the Bombay Stock Exchange, JSW Steel said: "The company will subscribe to 108.66 crore equity shares of Ispat by way of preferential allotment at a price of Rs 19.85 per piece."
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