The Board of Jindal Saw Ltd. (BSE:500378) announced the spin-off of JITF Infralogistics Limited on November 10, 2015. The transaction was approved by the Board of Jindal Saw Ltd. and scheme of arrangement was entered into. The consideration involves issue of 50 shares of JITF Infralogistics to the shareholders of Jindal Saw Ltd. for every 622 shares held in Jindal Saw Ltd. Accordingly, a total of 24.48 million new equity shares each will be issued by JITF Infralogistics. In the event, the compulsorily convertible debentures of Jindal Saw Ltd. are converted into equity shares on the record date, the total number of equity shares to be issued by JITF Infralogistics shall increase to upto 25.77 million. The transaction is subject to approval from Bombay Stock Exchange, National Stock Exchange, Securities and Exchange Board of India, shareholders and creditors of Jindal Saw Ltd. and court. Upon completion of transaction, JITF Infralogistics will apply for listing and trading of its shares on stock exchange. As of April 9, 2016, the shareholders, secured and unsecured creditors of Jindal Saw Ltd. approved the transaction. As of July 8, 2016, the transaction was approved by High Court of Allahabad. Khandelia & Sharma acted as accountant for Jindal Saw Ltd. while SPA Capital Advisors Limited acted as fairness opinion provider.
The Board of Jindal Saw Ltd. (BSE:500378) completed the spin-off of JITF Infralogistics Limited on September 7, 2016. Pursuant to the transaction, 25.7 million shares of JITF Infralogistics were issued to the shareholders of Jindal Saw Ltd. for INR 1.4 billion as of August 22, 2016, August 27, 2016 was fixed as the record date.
Jindal Saw Limited is an India-based company, which is a manufacturer and supplier of iron and steel pipes and pellets having manufacturing facilities in India, the United States of America (USA), Europe and United Arab Emirates (UAE). The Company has one primary business segment i.e. Iron & Steel products, on standalone basis. The Iron & Steel segment consists of the manufacturing of iron and steel pipes and pellets. Its Business Divisions consists of Welded Line Pipes; Ductile Iron (DI) Pipes; Seamless Pipes & Tubes, and Mining and Pellet division. The Company manufactures submerged arc welded (SAW) pipes and spiral pipes for the energy transportation sector; carbon, alloy and seamless pipes and tubes for industrial applications; DI pipes and fittings for water and wastewater transportation. It serves a range of customers' including oil and gas exploration, transportation, power generation, supply of water for drinking, drainage, irrigation purposes, and others.
