JSW Steel rises 10% in six days

JSW Steel gained 0.69% to Rs 315.70, extending its winning run to sixth consecutive trading session.

Shares of JSW Steel have surged 10.69% in six days from its previous closing low of Rs 285.2 on 12 October. The counter hit a 52-week high of Rs 318 yesterday, 19 October 2020. The stock is up 138% from its 52-week low of Rs 132.50 recorded on 3 April 2020.

Meanwhile, the Mumbai bench of the National Company Law Tribunal (NCLT) on Monday (19 October) approved JSW Steel to acquire bankrupt steel company Asian Colour Coated Ispat. JSW Steel has offered over Rs 1550 crore for the 1 million tonne steel plant. On 30 June 2019, the committee of creditors accepted JSW's bid through a majority vote. JSW bid includes Rs 1,525 crore payment to financial creditors and Rs 25 crore to operational creditors. The leading lenders of Asian Colour Coated include SBI, Punjab National Bank and JM Financials.

JSW Steel is a flagship company of the JSW Group, an integrated steel manufacturer in India with an installed steel-making capacity of 18 million tonnes per annum (MTPA).

On a consolidated basis, the steel major reported net loss of Rs 582 crore in Q1 June 2020 compared with net profit of Rs 1,008 crore in Q1 June 2019. Net sales slumped 41% to Rs 11,454 crore in Q1 June 2020 over Rs 19,407 crore in Q1 June 2019.

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