JSW Steel rises on buzz of talks of acquiring Welspun Maxsteel for Rs 1,000 crore

JSW Steel is currently trading at Rs. 1103.85, up by 6.40 points or 0.58% from its previous closing of Rs. 1097.45 on the BSE. The scrip opened at Rs. 1103.00 and has touched a high and low of Rs. 1107.20 and Rs. 1087.65 respectively. So far 73425 shares were traded on the counter. The BSE group 'A' stock of face value Rs. 10 has touched a 52 week high of Rs. 1109.35 on 21-Apr-2014 and a 52 week low of Rs. 451.50 on 19-Aug-2013. Last one week high and low of the scrip stood at Rs. 1109.35 and Rs. 996.20 respectively. The current market cap of the company is Rs. 26609.97 crore. The promoters holding in the company stood at 38.45% while Institutions and Non-Institutions held 23.29% and 38.27% respectively. JSW Steel, India’s third-largest steel maker is reportedly in preliminary talks to buy smaller rival Welspun Maxsteel for about Rs 1,000 crore. The company’s move aimed at sourcing cheaper raw material, cutting production costs and strengthening presence in the northern and western market. The acquisition will help the company to secure continuous supply of cheaper raw material as it plans to expand its Dolvi capacity to 5 million tonne. The company’s output from its 10 million tonne mother plant at Vijayanagar in Karnataka has suffered by the shortage of key raw material, iron ore, after a series of mining bans. JSW Steel is part of the JSW group which, in turn, is a part of the O P Jindal group. JSW Steel is one of the largest steel manufacturing companies in India having units in Karnataka and Maharashtra producing crude steel, long steel and flat steel products.