Hindalco Industries Limited has informed the Exchange about Acquisition
HINDALCO · price
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Awaiting price reaction for this filing.
Hindalco's board has approved acquiring 100% equity stake in EMMRL, a wholly-owned subsidiary of Essel Mining & Industries, which holds the lease for the Bandha coal block. The coal block has about 197 million tonnes of mineable reserves and a mine life of around 45 years, located roughly 20 km from Hindalco's Mahan power plant and smelter. The cash deal values the equity shares at around ₹48 lakhs, but EMMRL carries a net debt of about ₹1,131 crore. The acquisition is a related-party transaction (done at arm's length) and is subject to shareholder and regulatory approvals, with completion expected in 6–9 months.
Positive for shareholders — secures long-term coal supply for Hindalco's aluminium smelters, improves fuel security, and enables cost optimization, though the ₹1,131 crore net debt assumption is a factor to watch.