JSW Steel rose 0.98% to Rs 1,765.75 at 14:00 IST on BSE after the company announced that it has completed the acquisition of the entire shareholding of Praxair India Private Limited in JSW Praxair Oxygen Private Limited.
The announcement was made during market hours today, 17 August 2016.Meanwhile, the S&P BSE Sensex was down 12.74 points or 0.05% at 28,051.87.
On BSE, so far 40.648 shares were traded in the counter as against average daily volume of 79,991 shares in the past two weeks. The stock hit a high of Rs 1,770, so far during the day, which is a record high for the stock. The stock hit low of Rs 1,741.50 so far during the day. The stock had hit a 52-week low of Rs 829.35 on 25 August 2015. The stock had outperformed the market over the past one month till 16 August 2016, rising 7.29% compared with 0.82% rise in the Sensex. The scrip had also outperformed the market in past one quarter, gaining 35.04% as against the Sensex's 9.4% rise.
JSW Steel has paid cash consideration of Rs 240 crore for the acquisition of 74% stake in JSW Praxair Oxygen Private Limited (JPOPL) from Praxair India Private Limited. Post acquisition, JPOPL has become a wholly owned subsidiary of JSW Steel. Earlier, JSW Steel held 26% of the equity shares of JPOPL. JSW Steel had announced during market hours yesterday, 16 August 2016, that it had executed a share purchase agreement for acquiring the entire 74% holding of Praxair India Private Limited in JPOPL.
JSW Steel said that the acquisition is strategic in nature as it will provide the company the benefit of backward integration. JSW Steel currently sources industrial gases from JPOPL amongst others at prices based on long term contracts. JPOPL is engaged in the business of production and sale of industrial gases such as oxygen, nitrogen and argon and has set up two air separation plants, each with a capacity of 2,500 tonnes per day, at Toranagallu, Bellary District, Karnataka.
On consolidated basis, JSW Steel's net profit jumped 5133.6% to Rs 1109 crore on 2.4% rise in net sales to Rs 11542.38 crore in Q1 June 2016 over Q1 June 2015.
JSW Steel is an integrated steel company with an installed capacity of 18 million tonnes per annum.
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