Jindal Steel & Power Ltd. (NSEI:JINDALSTEL) (JSPL) s in advanced discussions with Yamato Kogyo Co., Ltd. (TSE:5444) to sell up to 49% stake in its rail mill unit at an estimated INR 30 billion, two people familiar with the development told ET. JSPL had initiated discussions with Yamato Kogyo around December last year and has entered into an initial understanding," said one of the people quoted above. "They have completed due diligence and negotiations are at the final stage." The rail mill will be valued at about INR 60 billion.

Yamato Kogyo is likely to pay about INR 30 billion for 49%," said the second person, requesting not to be named as negotiations are underway. Depending on the valuation, Yamato Kogyo may initially pick up 26% and subsequently increase it to 49% in the second phase. An email sent to Yamato Kogyo did not elicit any response.

A JSPL spokesperson said, "as per company policy, we do not respond to speculations.