JSW Steel rose 1.45% to Rs 740.35 at 14:21 IST on BSE after the company said it will set up a second steel processing centre in India with Tokyo-based Marubeni Itochu Steel Inc.
The announcement was made during trading hours today, 1 October 2013.
Meanwhile, the BSE Sensex was up 127.30 points, or 0.66%, to 19,507.07.
On BSE, 1.69 lakh shares were traded in the counter compared with average volume of 2.38 lakh shares in the past one quarter.
The stock hit a high of Rs 745.10 and a low of Rs 716.90 so far during the day. The stock hit a 52-week high of Rs 893.75 on 29 January 2013. The stock hit a 52-week low of Rs 451.50 on 19 August 2013.
The stock had outperformed the market over the past one month till 30 September 2013, rising 34.86% compared with the Sensex's 4.08% rise. The scrip had also outperformed the market in past one quarter, gaining 11% as against Sensex's 0.08% decline.
The large-cap company has an equity capital of Rs 241.72 crore. Face value per share is Rs 10.
JSW Steel announced its plan to set up a second steel processing center in India's automobile hub Pune (Maharashtra), with its joint venture (JV) partner Marubeni Itochu Steel Inc. Tokyo, (MISI).
The first phase of the project is expected to come on stream by the fiscal year ending March 2014, with an installed capacity of 1,80,000 tonnes per annum and will be scaled upto 3,60,000 tonnes per annum in second phase. The project will be set up at a capital cost of Rs 204 crore and will be funded through 50% equity and 50% debt element.
Mr Seshagiri Rao, Joint Managing Director, JSW Steel & Group Chief Financial Officer, said "The rapid growth of the Indian steel industry offers tremendous opportunity for supply of high end processed steel. We can leverage the global sales network of expertise of Service Center Operations of MISI and the World Class Technology Products manufactured by JSW."
The joint venture company is equipped to process flat steel products such as hot rolled, cold rolled and coated products with a view to offer just in time solutions to the automotive, white goods, construction and other value added segments.
In 2011, JSW Steel and Marubeni Itochu Steel Inc. formed a JV to set up a steel processing center near Palval (Haryana), under the name of "JSW MI Steel Service Center".
JSW Steel & MISI both have a history of cooperation in areas of mutual interest, which will further strengthen going forward.
JSW Steel reported consolidated net loss of Rs 381.82 crore in Q1 June 2013, as against net profit of Rs 49.65 crore in Q1 June 2012. Total income rose 3.5% to Rs 10289.80 crore in Q1 June 2013 over Q1 June 2012.
JSW Steel is engaged in manufacture of flat and long products viz. H R Coils, C R Coils, Galvanised/Galvalume products, Colour Coated Products, auto grade / white goods grade CRCA Steel, Bars and Rods. JSW Steel is one of the largest galvanizing and colour coating production capacity in the country and is the largest exporter of galvanized products with presence in over 100 countries across five continents.
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