JSW Steel completes buying high-grade steel plates & coils business of Welspun for ₹848.5 crore.
The company has also commenced production of Hot Rolled Plates from the new 5 MTPA Hot Strip Mill facility at its Dolvi Works.
Shares of JSW Steel extended gains in Thursday's deals as the stock hit a new high by surging more than 5% at ₹492 per share on the BSE. The stock of the steelmaker has been buzzing since the past few days on improved outlook.
JSW Steel in a recent exchange filing announced that it has completed the purchase of high-grade steel plates & coils business of Welspun for ₹848.5 crore. The company will also buy parcel of land with respect to PCMD business from Welspun Steel for ₹1.5 crore. The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones. The transaction has been closed on March 31, 2021.
PCMD Business is engaged in, amongst others, manufacturing of high-grade steel plates and coils. The PCMD Business will be of strategic importance for JSW to expand its value added and special products portfolio, particularly plate mill plates in which JSW has so far not been present, the company said.
The company in another filing announced that it has commenced production of Hot Rolled Plates from the new 5 MTPA Hot Strip Mill facility at its Dolvi Works. The Dolvi Works has an existing capacity of 5 million tonne per annum (MTPA).
The stock has been in focus as the steel company recently completed its purchase of Bhushan Power and Steel, paving its way to become the country’s biggest steel producer. The company would pay ₹193.50 billion ($2.65 billion) to Bhushan Power and Steel's creditors. Analysts reckon that the impact of the Bhushan Power and Steel acquisition may not be too harsh on JSW’s earnings and balance sheet.