Indian Metals & Ferro Alloys Limited (IMFA) has strengthened its position in the renewable energy sector by acquiring a significant stake in JSW Renew Energy Twelve Limited (JRETL). This strategic move comes as part of a share subscription agreement between the two companies.

Key Details of the Transaction

Transaction Insights

The allotment represents the first tranche of shares as per the Share Subscription and Shareholders Agreement between IMFA and JRETL. This strategic investment aligns with the growing trend of traditional metal and mining companies diversifying into the renewable energy sector.

Implications for IMFA

This acquisition marks a significant step for Indian Metals & Ferro Alloys Limited:

1. Diversification: The stake in JSW Renew Energy Twelve Limited allows IMFA to expand its portfolio beyond its core metals and ferro alloys business.
2. Green Energy Focus: The investment demonstrates IMFA's commitment to participating in India's growing renewable energy market.
3. Strategic Partnership: The 26% stake suggests a substantial strategic interest, potentially allowing IMFA to have a say in JRETL's future direction.

Market Perspective

While the immediate financial impact of this transaction on IMFA's balance sheet may be limited, it represents a strategic long-term investment. The renewable energy sector in India has been witnessing significant growth and attention from both domestic and international investors.

As the energy landscape continues to evolve, partnerships between traditional industrial players and renewable energy companies are becoming increasingly common. This collaboration between IMFA and JSW Renew Energy Twelve Limited could pave the way for future synergies and growth opportunities in the green energy space.

Investors and market watchers will likely keep a close eye on how this partnership develops and whether it leads to further investments or collaborations in the renewable energy sector.

Indian Metals & Ferro Alloys Limited (IMFA) has made a significant move to expand its ferro alloys business by announcing the acquisition of Tata Steel Limited's ferro chrome plant in Kalinganagar, Odisha. The deal, valued at a base purchase consideration of Rs 610.00 crores plus applicable GST and net working capital, marks a strategic step for IMFA to strengthen its position in the ferro alloys market.

Key Highlights of the Acquisition

• Asset Transfer Agreement: IMFA has signed an Asset Transfer Agreement with Tata Steel Limited for the Kalinganagar plant.
• Capacity Expansion: The acquisition includes a 99 MVA furnace capacity, comprising 66 MVA existing (100,000 tpa annual output) and 33 MVA under construction (50,000 tpa annual output).
• Land Assets: The facility is set up on 115 acres of land at Kalinganagar, Odisha.
• Strategic Benefits: The proximity to IMFA's captive chrome ore mines and upcoming greenfield expansion project is expected to lead to significant cost savings and operational synergies.
• Market Position: This acquisition will make IMFA India's largest producer of ferro chrome and the 6th largest globally.

Financial Implications and Funding

The acquisition will be financed entirely from internal accruals, showcasing IMFA's strong financial position. The deal is expected to close within 3-6 months, subject to regulatory approvals and other conditions.

Capacity and Production Outlook

• Total Installed Capacity: Post-acquisition, IMFA's total installed capacity will exceed 0.5 million tonnes per annum.
• Production Forecast:
  • FY27: ~400,000 tonnes (including existing capacity, acquisition, and greenfield expansion)
  • FY28: Expected to scale up to ~475,000 tonnes

Q2 FY2026 Financial Results

Alongside the acquisition announcement, IMFA also released its financial results for the quarter ended September 30, 2025:

Dividend Declaration

The Board of Directors has declared an interim dividend of Rs 5.00 per equity share (50% on face value of Rs 10.00), with the record date set for November 11, 2025.

Management Commentary

Mr. Subhrakant Panda, Managing Director of IMFA, commented on the acquisition: "I am delighted to announce this transformational acquisition which will fast track our expansion plans. Along with our ongoing greenfield expansion, it will take total installed capacity beyond 0.5 million tonnes enabling us to increase our market share with a particular focus on domestic sales at a time when demand for ferro chrome is increasing due to India's rapid economic growth."

He added, "We are committed to creating value for stakeholders and, building on the strong foundation of a fully integrated business model, will work to realize cost savings and operational synergies which will have a positive impact on the bottom line."

Regarding the Q2 results, Mr. Panda noted, "Ferro Chrome prices moved up noticeably towards the end of the second quarter due to elevated chrome ore costs for non-integrated producers and a sharp cutback in output in South Africa. This is partially reflected in the current results, and we expect to see the full impact in the ongoing quarter with the increase in benchmark as well as higher spot prices."

The strategic acquisition, coupled with strong financial performance and a generous dividend, positions IMFA for significant growth in the ferro alloys sector, capitalizing on the increasing demand driven by India's economic expansion.