BMW Industries stock up 9% on Rs 800 crore greenfield steel project nod

The total project cost of Rs 803.47 crore will be funded through a mix of internal accruals and debt

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Shares of BMW Industries soared nearly 9 per cent on Thursday after the company approved a capital expenditure (capex) worth Rs 803.47 crore for setting up a green-field downstream steel complex in Jharkhand. 

 

BMW Industries' stock rose as much as 8.77 per cent during the day to Rs 48 per share, the biggest intraday gain since February 5 this year. The stock pared gains to trade 5.91 per cent higher at Rs 46.7 apiece, compared to a 0.64 per cent advance in BSE Sensex as of 11:54 AM. 

 

Shares of the company extended gains to their fourth-day while they have fallen 13 per cent this year, compared to a 2.7 per cent fall in the benchmark Nifty 50. In the last four session, the stock has zoomed by nearly 18 per cent. BMW industries has a total market capitalisation of Rs 1,047.7 crore, according to BSE data.  

 

 

The company, in an exchange filing, said that it plans to expand its business by establishing a manufacturing plant in Bokaro, Jharkhand. 

 

The project involves the development of a downstream steel complex with an annual production capacity of 3 lakh tonne per annum (TPA) of cold rolled full hard coil; 5.4 lakh TPA of galvanized coil and 2 lakh TPA of color coated coils, according to the statement. The total project cost is estimated to be Rs 803.47 crore, which will be funded through a mix of internal accruals and debt, it said. 

 

The project is expected to become operational in stages over the next two years, with the first plant set to begin its commercial operations in FY26. "The board believes that the proposed project will create long-term value for the company and its stakeholders by strengthening its presence in the downstream steel processing sector and expanding its market reach," the statement said. 

  This expansion will enable the firm to leverage its existing strengths in downstream steel processing and cater to the growing demand across the country. The statement also added that the project’s proximity to the Haldia/Kolkata port, will facilitate access to global markets. 

The company is primarily engaged in manufacturing of tubular poles and structures transmission line towers rebars and providing steel servicing centre and infrastructural services.