Jindal Stainless surges on signing MoU with Posco

Shares of Jindal Stainless are up 8% at Rs 55.30

Jindal Stainless has surged almost 8% to Rs 55.30 after the company said it has signed a Memorandum of Understanding (MoU) with a South Koeran steel major Posco to mutually cooperate with each other for long-term joint business opportunities.

The said MOU is applicable for 3 years and can be extended by mutual agreement, Jindal Stainless said in a statement.

Under this agreement, the Jindal Stainless will supply 200 series stainless steel products to Posco and its subsidiaries and the two partners will jointly review the Orissa project of Jindal Stainless. The companies will also explore the establishment of a nickel smelter in Indonesia besides joint overseas projects such as service centres and cold rolling mills.

The stock opened at Rs 51.85 and hit a high of Rs 57.65 on BSE. A combined 911,868 shares have changed hands on the counter so far on BSE and NSE.