The stock gained 5.69 per cent to Rs 49.15 on the BSE.
On NSE, it jumped 5.69 per cent to Rs 49.20.
SAIL said yesterday that it will spend Rs 7,500 crore on modernisation and expansion programme in the current fiscal ending March 2016.
The public sector undertaking (PSU) also said it will seek shareholders nod to raise Rs 5,000 crore through securities to part finance the plans.
So far, the 'Maharatna' company has invested over Rs 58,000 crore in its Rs 70,000 crore modernisation and expansion plan, which will augment the crude steel production capacity at its five steel plants to 23 million tonnes per annum (MTPA).