JSW Steel, an integrated steel manufacturer, announced that it will acquire 50% stake in Vallabh Tinplate (VTPL) for about Rs 460 million. The deal will be completed in two phases.

Of this, the company intends to acquire 26% stake in VTPL immediately and shall increase its stake to 50% in due course, it said.

JSW Steel has executed a legally binding share purchase agreement and shareholders agreement with the shareholders of VTPL and VTPL, the company said.

VTPL, owned by Vardhaman Industries has a 60,000 tons per annum tinplate manufacturing facility in Punjab's Patiala district.

The acquisition marks JSW Steel's entry into growing Tinplate business in India, the company said.

It will have representation in the Board of VTPL proportionate to its equity holding with a right to appoint certain key managerial personnel.

Shares of the company gained Rs 20.05, or 2.31%, to settle at Rs 886.20. The total volume of shares traded was 96,498 at the BSE (Friday).