Sajjan Jindal, vice-chairman of the JSW Group, may merge two of his unlisted companies – JSW Cement Ltd and JSW Aluminium Ltd – into his publicly traded holding company Jindal South West Holdings Ltd, or JSW Holdings.
“A possibility exists and right now they are independent companies,” he told Mint last week in a phone conversation in Mumbai, but added that a final decision has not yet been taken.
JSW Group vice-chairman Sajjan Jindal. JSW Cement and JSW Aluminium, both unlisted, are wholly owned by Jindal.
The move, if completed, will increase Jindal’s stake in JSW Holdings substantially, allowing him to access money to build a 1Mt alumina refinery plant and expand cement capacity to 30Mt.
“We need to raise money to fund our aluminium business and a merger of the cement and aluminium companies into JSW Holdings Ltd will increase the balance sheet and assets of JSW Holdings Ltd,” a senior official of the company said. He declined to be named as he is not authorized to speak to the media.