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JSPL shines after divesting oxygen plant assets of two units

Capital Market 

gained 3.97% to Rs 158.45 at 11:45 on after the company said that it has consummated sale of oxygen plant assets at Rs 1121 crore with SREI Equipment

The announcement was made during market hours today, 9 October 2017.

Meanwhile, the S&P Sensex was up 22.46 points, or 0.06% to 31,834.85.

On the BSE, 13.29 lakh shares were traded in the counter so far, compared with average daily volumes of 13.81 lakh shares in the past one quarter. The stock had hit a high of Rs 161 in intraday trade, which is also a 52-week high for the stock. The stock had hit a low of Rs 153 so far during the day. The stock had hit a 52-week low of Rs 62.55 on 9 November 2016.

The stock has gained 17.58% in five sessions to its ruling price, from a close of Rs 134.75 on 29 September 2107.

The stock had outperformed the market over the past one month till 6 October 2017, gaining 7.78% compared with the Sensex's 0.48% gains. The stock had also outperformed the market over the past one quarter, rising 16.2% as against the Sensex's 1.42% rise. The scrip had also outperformed the market over the past one year, surging 92.42% as against the Sensex's 13.19% rise.

The large-cap company has equity capital of Rs 91.50 crore. Face value per share is Re 1.

(JSPL) said that under the transaction it has divested its oxygen plant assets at its integrated steel plants at Raigarh, Chattisgarh and Angul, Odisha and received a total consideration of Rs 1121 crore.

and SREI Equipment have also entered into a lease back agreement of the oxygen plant assets for continued operations by for manufacturing of steel at the respective plants.

commissioned India's largest 4 million tonnes per annum (mtpa) in Q2 FY 2018 to mark the completion of its 6 mtpa integrated steel plant at Angul. The scheduled commissioning of the basic oxygen furnace at Angul during this quarter will further strengthen the cash flow streams of the company.

JSPL's 3.6 mtpa integrated steel plant at Raigarh is amongst the most efficient steelmaking facilities in the country. Under its asset sweating roadmap, the company has successfully continued to sequentially enhance the capacity utilization levels of its steel and power assets.

On a consolidated basis, JSPL reported net loss of Rs 420.46 crore in Q1 June 2017, lower than net loss of Rs 1238.11 crore in Q1 June 2016. Net sales rose 23.6% to Rs 5607.27 crore in Q1 June 2017 over Q1 June 2016.

JSPL has a dominant presence in steel, power, mining and infrastructure sectors. It caters to markets across the steel value chain.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Mon, October 09 2017. 12:32 IST