Shares of JSW Steel were up 1.3% at Rs 1,293 after the company said it has entered into an agreement with Welspun Enterprise to acquire entire equity shares of Welspun Maxsteel for Rs 1,000 crore.
JSW Steel plans to expand its steel production capacity to 40 million tonnes per annum.
This is Mumbai-based JSW Steel’s second acquisition in 2014. In March, the Sajjan Jindal-led company had acquired a 50 per cent stake in Punjab-based Vallabh Tinplate for Rs 46 crore, marking its foray into the latter segment.
Welspun Maxsteel has an installed capacity of 0.90 MTPA gas based DRI plant, with a captive jetty and captive railway siding, JSW Steel said in a release.
The stock opened at Rs 1,291 and touched a high of Rs 1,299 so far. Over 533,000 shares were traded so far on both the stock exchanges.
