JSPL gains on buzz of Stemcor assets buy

JSPL has emerged as a frontrunner to acquire the Indian assets of London-based Stemcor Holdings, report.

Jindal Steel and Power (JSPL) is trading higher by 3.5% at Rs 206, extending its previous day’s 5% rally, on reports that the company has emerged as a frontrunner to acquire the Indian assets of London-based Stemcor Holdings.

The stock has opened at Rs 199 and touched high of Rs 210 on NSE. A combined 2.28 million shares already changed hands on the counter till 1043 hours against an average around 2 million shares that were traded daily in past two weeks on NSE and BSE.

Naveen Jindal-led JSPL and Stemcor Holdings, the cash-strapped independent steel trader, have also entered into an "exclusivity" arrangement recently for bilateral negotiations that will allow JSPL to conduct a detailed diligence of the company and its assets, the Economic Times report suggests.

Stemcor, one of Britain's largest private unlisted companies, has appointed Goldman Sachs to find a buyer for its Indian operations, which include majority ownership in an iron ore mine, a pellet plant and a 230-km long slurry pipeline connecting the iron mines with the pellet factory in Odisha, added report.