JSW Steel and JSW Ispat will be merged. How much will the two companies benefit from the merger? What is the swap ratio of shares for merger? Zee Business Senior Research Analyst Ashish Chaturvedi's report.

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Chaturvedi said JSW Steel's results were very weak, due to which this stock fell today. The reason for the fall of JSW Ispat is that the expectation was very high for this stock.

Talking about the swap ratio of shares for the merger, Chaturvedi said that on 21 shares of JSW Ispat, one share of JSW Steel will be available. In 2018, JSW Ispat, which used to be called Monnet Ispat & Energy Limited, was acquired. It was bought by JSW Group from NCLT. After this, the name of the company was changed.

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He said the capacity of JSW Steel is 26 million tonnes per annum. Whereas JSW Ispat's capacity is 1.2 million tonnes per annum. This ratio is of 21 times. On the basis of revenue, it is about 24 times. Due to this, the expectations were a bit high regarding this ratio, said Chaturvedi. JSW Ispat Special Products share is currently showing a decline of 18%.

The stock that has seen a fall today - around 18% - is believed to be a fair stock after that. Also, the track record of the company in terms of profits is not so good.

Expert Advice
The expert Ashish suggested not to react to this and hold this share.