Jindal Steel strengthens on the buzz of acquiring management control of WCL

Jindal Steel & Power is currently trading at Rs. 278.35, up by 4.35 points or 1.59% from its previous closing of Rs. 274.00 on the BSE. The scrip opened at Rs. 274.00 and has touched a high and low of Rs. 282.00 and Rs. 273.85 respectively. So far 97724 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 1 has touched a 52 week high of Rs. 338.40 on 08-May-2013 and a 52 week low of Rs. 181.55 on 02-Aug-2013. Last one week high and low of the scrip stood at Rs. 285.25 and Rs. 268.35 respectively. The current market cap of the company is Rs. 25598.51 crore. The promoters holding in the company stood at 60.41% while Institutions and Non-Institutions held 26.45% and 13.14% respectively. Jindal Steel & Power (JSPL) has reportedly acquired management control of Australian metallurgical coal miner Wollongong Coal (WCL) from the original promoters -- Gujarat NRE Coke. Following this, WCL formerly Gujarat NRE Coking Coal (GNCCL), is now a subsidiary of JSPL. Navin Jindal-controlled JSPL is investing Australian $45 million for around 45 per cent in the company. At present, WCL has planned to raise $42.84 million through prorate rights issue in the ratio of two for 11 shares at $0.075 a share. JSPL is a part of Jindal Group and is a leading player in Steel, Power, Mining, Oil & Gas and Infrastructure. The company produces economical and efficient steel and power through backward integration from its own captive coal and iron-ore mines and passes on the benefits to its customers.