Hot Pursuit
Jindal Stainless rose 1.13% to Rs 595.05 after the company's board approved the acquisition of a 5.03% stake in Mynd Solutions, a leading RBI-regulated TReDS (Trade Receivables Electronic Discounting System) and supply chain financing platform.
The acquisition was approved by the board of directors in a meeting held on Monday, 25 March 2025, and is part of the company's strategic move to enhance supply chain financing for its vendors. The target entity, Mynd Solutions, operates the M1xchange platform, which supports MSMEs and non-MSMEs by providing access to digital supply chain financing, streamlining payments, optimizing working capital cycles, and improving overall efficiency across the supply chain structure.
The total cost for the acquisition of the 5.03% stake is approximately Rs 102.7 crore, with the transaction involving a combination of primary capital and secondary purchase of shares from existing shareholders. Including the stake held by Jindal Stainless Steelway (JSSL), a wholly owned subsidiary of JSL, the company now holds a consolidated 9.62% stake in Mynd Solutions, with a total blended cost of acquisition of Rs 154 crore for the entire stake.
The acquisition does not fall under related party transactions. None of the promoters, promoter group, or group companies has any interest in the proposed acquisition and no governmental or regulatory approvals are required. The deal is expected to be completed by the first quarter of FY26.
Mynd Solutions, which was incorporated in February 2002, launched the M1xchange platform in 2017. The platform has since onboarded over 65 banks, 2,000 corporates, and 48,000 MSMEs and facilitated invoice discounting worth over Rs 1,60,000 crore.
Mynd Solutions has demonstrated robust financial growth, with its turnover rising from Rs 14.3 crore in FY22 to Rs 56.5 crore in FY24.
Abhyuday Jindal, managing director of Jindal Stainless, said, 'At Jindal Stainless, we recognise that access to timely and affordable financing is a crucial growth enabler for businesses, especially MSMEs. This investment will have a two-pronged advantage ' it will empower our domestic and international channel partners, both upstream and downstream, and provide enhanced liquidity to further strengthen JSL's balance sheets. It reflects our ethos of building a holistic ecosystem that aligns with our vision of strengthening industry partnerships and driving inclusive economic progress.'
Anurag Mantri, ED and CFO at Jindal Stainless, remarked, 'The scale and reach of Jindal Stainless combined with the full suite of digital supply chain financing solutions at M1Xchange, including GIFT City offerings, would revolutionize traditional financing practices and pave the way for cheaper credit access for its entire global value chain, including the deep-tier channel.'
Sundeep Mohindru, Promoter & Director, M1xchange,This investment by Jindal Stainless marks a significant milestone in M1xchange's journey of innovation, technology, and growth. Our suite of supply chain finance solutions, including TReDS for the domestic market, ITFS (GIFT City) for the global market, and our Channel Finance solution through Mynd Fintech, will empower JSL and its ecosystem partners to enhance growth and competitiveness. This strategic partnership will greatly expand access to working capital solutions for JSL's suppliers and customers, both across India and globally.
Jindal Stainless is India's leading stainless-steel manufacturer. It had a consolidated annual turnover of Rs 38,562 crore (USD 4.7 billion) in FY24 and is ramping up its facilities to reach 4.2 million tonnes of annual melt capacity by FY27. The company has 16 stainless-steel manufacturing and processing facilities in India and abroad.
Jindal Stainless reported a 5.4% decline in consolidated net profit to Rs 654.84 crore in Q3 FY25 as against Rs 692.33 crore posted in Q3 FY24. However, revenue from operations rose 8.5% YoY to Rs 9,907.30 crore in the quarter ended 31 December 2024.
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