Year |
2011 |
Volume/Issue/Review Month |
Vol. - IV | Spl. Issue 2 | Jan |
Title |
JSW Steel - Ispat Deal : Steely Impact |
Authors |
Prabhat Kumar Sahoo , H.B. Gochhayat , Kamalesh Chawda |
Broad area |
JSW Steel - Ispat Deal : Steely Impact |
Abstract |
This is the first of its kind and a pioneering deal in the Indian steel
sector and it could, in a sense, be one of the many more to come.
Although this deal will stretch JSW’s balance sheet in the shortterm,
the deal would benefit JSW in the long-term, given the low
valuations of the deal, readily available capacity and huge potential
for improvement in operations. This could also be beneficial from
the perspective of the shareholder (especially of Ispat) because
control moves into stronger hands that will be able to rightfully
justify the capacity and available resources. |
Description |
The JSW Steel and Ispat deal rightfully attracted a lot of attention, given that this is the first ever effort at M&A in the steel sector in India. Before getting into the analysis of the deal, we briefly look at the individual companies and the blueprint |
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