In Tuesday’s trading session, the shares of JSW Steel Limited zoomed by 0.49%. The company’s current market capitalization is Rs 2,10,027.81 crore.
The company reported that its wholly-owned subsidiary, Periama Holdings LLC, has successfully acquired the remaining 10% stake in JSW Steel (USA) Inc. This acquisition has elevated JSW USA to the status of a wholly-owned subsidiary of Periama and, in turn, a step-down wholly-owned subsidiary of JSW Steel.
Before this transaction, Periama held 90% of the stake in JSW USA, with the remaining 10% owned by Green Suppliers and Services Pte Limited. In a development from October of the same year, JSW Steel had previously revealed that Green Suppliers and Services Pte Ltd expressed their intention to sell their stake in JSW USA, leading to the subsequent acquisition by Periama.
About the company:
JSW Steel is a key player in the production and sale of iron and steel products, with an ambitious goal to enhance its crude steel capacity from 18 MnTPA in FY20 to an impressive 45 MnTPA in the coming decade.
A significant milestone for the company was the successful acquisition of BPSL in 2021, solidifying its position as the largest steel producer in India. Notably, JSW Steel owns the largest single steel plant in India, boasting a substantial capacity of 12 MnTPA. This strategic move aligns with the company’s broader vision for growth and dominance in the steel industry.
In the last quarter, promoters successfully unpledged 0.91% of shares, bringing the total pledge down to 14.12% of their holdings. During the September 2023 quarter, there was a slight decrease in promoter holdings, dropping from 45.40% to 44.80%.
Concurrently, FII holding increased from 25.98% in June 2023 to 26.13% in September 2023, indicating a boost in confidence among investors.
Furthermore, the stock has witnessed significant buying activity as it has given multibagger returns of more than 135% in the last 3 years.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.