Essar in deal to buy Shree Precoated

Essar Steel on Tuesday said that the company has entered into a definitive business transfer agreement with Shree Precoated Steels Ltd to acquire entire assets and debts of the latter for about Rs 800 crore.

Mahadev Iyer, director (finance), Essar Steel, said that due diligence is underway and the exact price for the acquisition will be frozen after that.

“We are taking over the fixed, current assets and debts of the company. Fixed assets are valued at Rs 600 crore and long-term debt is Rs 175 crore,” he said.

The deal, if it goes through after the various regulatory and other approvals, will make Essar Steel India’s largest cold rolled steelmaker with an annual capacity of 2 million tonnes.

J Mehra, CEO, Essar Steel Business Group, said, “This acquisition will add Rs 2,600 crore to our topline.” 

He said that the plant is located in Pune which will help us cater to both western and southern markets. 

Shree Precoated is a part of the real estate major Ajmera Group  and has 4 lakh tonne of colour coating lines, 6 lakh tonne of cold rolling mill, a 5 lakh tonne galvanising line and a 6.5 lakh tonne pickling line.