The merged JSW Steel-Ispat entity will have revenues of Rs 43,000 crore, Joint MD & Group CFO Seshagiri Rao said.

Sajjan Jindal-led private sector steel producer on Saturday confirmed that JSW Steel would merge JSW Ispat with itself as a part of its much talked about wide-ranging restructuring. JSW Steel announced the merger 20 months after purchasing a controlling stake in rival steel producer Ispat Industries.

The merged company is expected to become India's biggest private sector steel producer with production capacity of 14.3 million tonnes per annum, almost matching the 14.6 million tonnes per annum capacity of public sector SAIL India.

Speaking about the capacity of the merged entity, Seshagiri Rao said, "The goal is to be 100% self-sufficient in iron ore. The merger will result in margins improvement."

Announcing the merger, Chairman & Managing Director Mr. Jindal said that the merger of JSW Ispat with JSW Steel was a significant step in the company's ongoing growth journey towards creating a world-class international steel company.

The JSW Steel-Ispat merger will take place in the ratio of 1:72. It means, there will be 75 shares of JSW Ispat for every share of JSW Steel. This will lead to 8 per cent equity dilution. Promoters will hold 35.12 per cent in entity.