Jindal Stainless inches up on planning to invest Rs 5,400 crore in capacity expansion, acquis
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Jindal Stainless is currently trading at Rs. 734.05, up by 0.15 points or 0.02% from its previous closing of Rs. 733.90 on the BSE.
The scrip opened at Rs. 735.25 and has touched a high and low of Rs. 740.30 and Rs. 725.65 respectively. So far 37779 shares were traded on the counter.
The BSE group 'A' stock of face value Rs. 2 has touched a 52 week high of Rs. 747.90 on 24-Apr-2024 and a 52 week low of Rs. 270.55 on 15-May-2023.
Last one week high and low of the scrip stood at Rs. 740.30 and Rs. 691.95 respectively. The current market cap of the company is Rs. 60703.60 crore.
The promoters holding in the company stood at 60.49%, while Institutions and Non-Institutions held 27.45% and 12.05% respectively.
Jindal Stainless has unveiled major expansion and acquisition plans to augment its melting and downstream capacities, to become one of the largest stainless steel producers in the world. The company announced a three-pronged investment strategy worth nearly Rs 5,400 crore to achieve global leadership in stainless steel.
Jindal Stainless entered into a joint venture (JV) for developing and operating a stainless steel melt shop (SMS) in Indonesia with an annual production capacity of 1.2 million tonnes per annum (MTPA). This will increase the company’s melting capacity by over 40% to 4.2 MTPA at an investment of more than Rs 700 crore.
Secondly, the company also set aside around Rs 1,900 crore for the expansion of its downstream lines in Jajpur, Odisha, to be able to process an increase in melting capacity. Besides, the company earmarked nearly Rs 1,450 crore towards the associated upgradation of infrastructural facilities, such as railway siding, sustainability-related projects, and renewable energy generation.
Thirdly, the company will acquire a 54% equity stake in Chromeni Steels (CSPL), which owns a 0.6 MTPA cold rolling mill located in Mundra, Gujarat, through a structured indirect acquisition deal. The transactions entail an outlay of around Rs 1,340 crore, comprising a takeover of existing debt of around Rs 1,295 crore and a balance of around Rs 45 crore towards equity purchase.
Jindal Stainless (JSL) is one of the largest stainless steel conglomerates in India and ranks amongst the top 10 stainless steel conglomerates in the world.
