Through both off and on market transactions, 10 promoter group companies of JSW Ispat Steel offloaded
6.38 per cent stake in the firm for Rs 174.47 crore, according to a communication to the stock exchange.
All the 10 promoter firms belong to Pramod and Vinod Mittal or their families, which held less than 20 per cent stake in JSW Ispat before these transactions.
These firms are Ispat Steel Holdings, Kartik Credit, Navoday Consultants, Navoday Highrise, Navoday Niketan, Ushaditya Trading, Goldline Tracom, Mita Holdings, Navadisha Real Estate and Denro Holdings.
Following this, over 16 crore shares amounting to 6.38 per cent of JSW Ispat Steel exchanged hands.
It may be noted that on January 30, the shareholders of the firm scheduled to hold a meeting to approve JSW Ispat's merger with JSW Steel.
JSW Ispat has two major promoters — JSW Steel with 46.75 per cent stake and firms belonging to Pramod and Vinod Mittal or their families.
Pramod and Vinod Mittal — brothers of the steel czar L N Mittal — were the original promoters of JSW Ispat Steel (then known as Ispat Industries). However, owing to mounting losses, they had sold 41 per cent stake in the company to JSW Steel in December, 2010.