Jindal Stainless rallies for 7th day on JS Hisar merger record date — check out share swap ratio, what it means for investors

Jindal Stainless Ltd (JSL) shares continued to rise for the seventh day in a row to scale a fresh record high on Thursday, March 9, the record date for the company's merger with Jindal Stainless Hisar Ltd (JSHL) through a share swap. JSL shares staged a strong move with a surge in volumes, rising by as much as Rs 14.8 or 4.7 per cent to Rs 326.6 apiece on BSE, whereas trading in the Jindal Stainless Hisar stock was suspended.

Jindal Stainless Hisar shares were frozen at Rs 560.8 apiece on the bourse, up 3.6 per cent from their previous close.

Earlier, the stainless steel makers entered a scheme of mega amalgamation that would create one of the biggest stainless steel producers in the country. Under the scheme, Jindal Stainless Hisar will be merged into Jindal Stainless in a share swap ratio of 1:1.95.

What does the March 9 record date mean for Jindal Stainless Hisar investors?

Jindal Stainless Hisar had earlier announced March 9 as the record date for a share swap in the ratio of 1:1.95. A record date determines the investors eligible to benefit from a proposed corporate action such as a dividend, a bonus or a share swap.

A share swap ratio of 1:1.95 means against each equity share held in Jindal Stainless (Hisar), investors will get a 1.95 equity share of Jindal Stainless — or investors will get 195 Jindal Stainless shares for every 100 Jindal Stainless Hisar shares held.

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How big is the Jindal Stainless Hisar-Jindal Stainless merger?

Both companies have said that the merger will create the country's largest stainless company that will be among the world's 10 largest stainless steel companies with a melting capacity of 1.9 MTPA.

In a separate development, iShares Core MSCI EM ETF bought 33.7 lakh Jindal Stainless shares worth Rs 104.3 crore, equivalent to 0.64 per cent of the company's equity, at Rs 309.4 apiece.

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