JSW Group's Steel Business Acquires 100% Stake in Saffron Resources for Rs 679.34 Crore

DSIJ Intelligence-2 / 19 Jul 2025/ Categories: Mindshare, Trending

JSW Group's Steel Business Acquires 100% Stake in Saffron Resources for Rs 679.34 Crore

On YTD basis the stock is up by 10 per cent while in last 12 months it is up by 10 per cent.

JSW Steel Limited has announced the acquisition of 100 per cent equity interest in Saffron Resources Private Limited for an enterprise value of Rs 679.34 crore. The deal was disclosed under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The completion of the transaction is subject to the fulfilment of customary conditions precedent mentioned in the Share Purchase Agreement (SPA).

Saffron Resources, incorporated on September 16, 2014, owns 887 acres of land in Odisha earmarked for JSW Steel’s future expansion projects. Currently engaged in land development, the company has reported nil turnover for the past three years. The transaction involves cash consideration, including a Holdback amount of Rs 40.1 crore, which will be released upon meeting specified milestones. No government or regulatory approvals are required, and the acquisition is expected to close within 60 days from signing, with an extension possible upon mutual agreement. JSW Steel confirmed that this is not a related-party transaction and that its promoter group holds no stake in Saffron Resources.

DSIJ's 'Value Pick' service recommends long-term stocks based on Value Investing Philosophy. If this interests you, download the service details here.

As of July 18, 2025, JSW Steel’s share price closed at Rs 1,034.40, registering a slight rise of 0.02 per cent from its previous close. The stock has delivered returns of about 11.05 per cent in one year, 76.53 per cent in three years, and 400.31 per cent in five years, reflecting significant growth for long-term investors.

In FY25, the company achieved its highest-ever crude steel production at 27.791 million tonnes, with saleable steel sales of 26.452 million tonnes. Revenue from operations stood at Rs 1,68,824 crore, supported by an operating EBITDA of Rs 22,904 crore and a net profit after tax of Rs 3,491 crore. In Q1 FY26, JSW Steel reported a consolidated net profit of Rs 2,184 crore, marking a 158 per cent year-on-year increase on revenue of Rs 43,147 crore.

JSW Steel, part of the diversified JSW Group, is engaged in manufacturing and selling a wide range of iron and steel products. The company operates integrated steel plants in Vijayanagar (Karnataka), Dolvi (Maharashtra), and Salem (Tamil Nadu), with additional operations in Anjar, Gujarat. On YTD basis the stock is up by 10 per cent while in last 12 months it is up by 10 per cent.

Disclaimer: The article is for informational purposes only and not investment advice.