JSW Steel News

Update on acquisition of up to 66.67% economic interest in M Res NSW HCC Pty Ltd

Intimation of schedule of analyst/institutional investor meeting

India has decided to consult steel companies before imposing restrictions on imports of low ash metallurgical coke, essential for steelmaking. The move has faced opposition from major steel producers, who claim this could hinder capacity expansion. Authorities are also considering alternative measures such as setting a minimum import price.

The Nifty 50 closed at 25,018, just short of a new all-time high, as the BSE Sensex ended at 81,711. Gains were led by Bajaj Finserv and other major companies. Investors anticipate the Federal Reserve's interest rate cut in September. Nifty Media saw substantial growth following Zee Entertainment's settlement agreement with Sony India.

Minutes of 30th Annual General Meeting held on 26.07.2024.

The Sensex and Nifty50 rose on Monday, buoyed by gains in financial and IT stocks after U.S. Federal Reserve Chair Jerome Powell hinted at upcoming interest rate cuts. Major gainers included Tech Mahindra and TCS, while sectors such as IT and Financial Services saw growth. Conversely, FMCG and Pharma sectors experienced declines.

Last week, the Nifty index exhibited a choppy but positive trend, with potential gains towards 25,100-25,200. Analysts noted important support levels and recommended buying opportunities during minor dips. Stocks such as ICICI Bank, Nykaa, Sun Pharma, and Bajaj Auto showed positive momentum. Investors were advised to cautiously maintain and seek long positions.

Karnataka Minister M B Patil assured there was no irregularity in transferring 3,666 acres to Jindal Steel, following a High Court directive. The Cabinet's decision implemented a 2021 order from the previous BJP government. JSW Steel will acquire the land at rates between Rs 1.22 lakh and Rs 1.50 lakh per acre.

This week witnessed a significant surge in smallcap stocks, with 152 of them posting double-digit gains, and nine even surpassing the 30% mark. This performance is notably stronger than the previous week, which saw only 43 smallcaps achieve double-digit growth. Leading the pack was Rane Madras with an impressive 39% return, followed closely by SEPC at 38%, Shriram Properties at 36%, and Tasty Bite Eatables at 35%.

Former steel secretary Nagendra Nath Sinha has raised concerns about the Indian steel market being impacted by unfair imports and dumping, exacerbated by a demand slump in China. He emphasised the need for the government to take immediate action to address these issues to protect the profitability of domestic steel makers. An anti-dumping probe has been initiated into the import of hot-rolled steel products from Vietnam following complaints from the Indian Steel Association.

The profits of 40 Indian companies have plummeted by more than 50% in the June quarter, primarily due to higher raw material costs and unfavorable base effects. Notable names like Allcargo Logistics and Rajesh Exports saw drastic declines. Analysts suggest cautious investment strategies amid high market valuations and slowing profit growth.

India has been a net importer of steel during April to July of the current fiscal year, importing 2.69 million tons, primarily from China. Meanwhile, exports totaled 1.57 million tons. The increasing imports have driven down steel prices to their lowest in more than three years. Major steel companies have expressed concerns over rising imports.

New investor presentation uploaded on our website

The domestic blue-chip indices closed higher on Tuesday, thanks to gains in financials and information technology stocks. The Sensex rose 378 points to 80,803, and the Nifty added 126 points to finish at 24,699. However, newly listed Ola Electric Mobility ended 5.7% lower due to profit booking. Investor focus now shifts to upcoming Fed announcements.

Intimation under SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015

Tata Steel, JSW Steel, and other mining companies might face increased costs due to additional state-imposed mining taxes, as per a Supreme Court decision. This could reduce profitability and impact the value chain, causing inflation. States are now authorized to levy taxes and claim backdated royalties, significantly affecting the financial status of impacted companies.

Intimation of Schedule of Analyst/ Investor Meetings

Technical analysts noted a strong bounceback in Nifty, predicting further upward momentum. Stocks such as Vedanta and Hindustan Copper formed bullish setups. Investors are advised to focus on IT and FMCG sectors, while considering partial profits in pharma. Positive trends were also seen in metal and banking sectors.

The Exchange has received Disclosure under Regulation 31(1) and 31(2) of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 2011 on August 17, 2024 for Virtuous Tradecorp Pvt Ltd

Update on acquisition of up to 66.678% economic interest in M Res NSW HCC Pty Ltd.

Nifty achieved a 4% YoY growth in profit after tax (PAT), exceeding Motilal Oswal's 3% estimate, though it's the slowest growth since the pandemic quarter of 2020. Key contributors to this growth were HDFC Bank, Tata Motors, ICICI Bank, Maruti Suzuki, and Tata Consultancy Services (TCS), which together accounted for 127% of the incremental YoY earnings.

The Nifty closed nearly flat, impacted by mixed investor sentiment ahead of the U.S. CPI data. Gains in IT stocks, thanks to soft U.S. producer price data, were offset by profit booking. Leading gainers were TCS and Infosys, whereas sectors like Nifty Bank and Pharma declined.

India's Supreme Court has permitted state governments to collect outstanding tax dues from mining companies dating back to April 1, 2005, impacting the financial stability and future investments of these firms. This decision will stagger the payment in installments over 12 years starting from April 1, 2026.

Jindal Stainless on Monday said it will manufacture customised stainless steel and speciality low-alloy steel sheets for defence projects of BrahMos Aerospace.

Acquisition of upto 66.67% economic interest in M Res NSW HCC Pty Ltd- Execution of transaction related documents.

​​The investment, amounting to US$ 120 million, will be executed through JSW Steel's wholly owned subsidiary, JSW Steel (Netherlands) B.V., by subscribing to non-voting Class B shares.

​​The investment, amounting to US$ 120 million, will be executed through JSW Steel's wholly owned subsidiary, JSW Steel (Netherlands) B.V., by subscribing to non-voting Class B shares.

Acquisition of up to 66.67% Economic Interest in M Res NSW HCC Pty Ltd

Indian steel producers have requested the government to levy export taxes on low-grade iron ore and pellets to counter local shortages. The Indian Steel Association anticipates iron ore shortages will rise significantly, affecting the goal to double steel output by 2030. These measures aim to ensure sufficient local supply for the projected demand.

In 1QFY25, the Nifty index showed a 16% earnings growth. Major contributors included HDFC Bank and Tata Motors, while BPCL and JSW Steel underperformed. Coal India and Adani Ports are expected to offer 13-20% returns over the next year, driven by strong operational growth and strategic positioning

India, the world's second-biggest producer of crude steel, in April proposed a country-specific import quota to cap annual imports of low ash metallurgical coke, also known as met coke, at 2.85 million metric tons for one year. The aim is to protect the country's local producers, which have complained about rising imports.

JSW Steel Reports consolidated crude steel production of 22.15 lakh tonnes for July 2024.

In September, Trent and Bharat Electronics (BEL) were expected to be added to the Nifty index, replacing LTIMindtree and Divi's Labs, said Nuvama Alternative & Quantitative Research. This reshuffling could bring in substantial capital. An official announcement was anticipated in August, and Zomato and Jio Financial might also be included if approved by Sebi.

Clarification/Confirmation of the Company on news item appearing on https://economictimes.indiatimes.com.

The Exchange has sought clarification from JSW Steel Ltd on August 7, 2024, with reference to news appeared in https://economictimes.indiatimes.com dated August 7, 2024 quoting "JSW Steel plans NCD issue to raise Rs 2,500 cr to fund its capex plans "

The reply is awaited.

Analyst/Investor Meet

JSW Steel sought ₹2,500 crore through SBI and ICICI Bank for capital expenditure. The company aimed to issue non-convertible debentures at an 8.5% interest rate. JSW intended to invest ₹20,000 crore in FY25 to enhance production capacity, targeting 50 million tonnes by FY31. Talks were reportedly in advanced stages.

On Tuesday, the Indian stock market rebounded as positive US economic data alleviated recession concerns. Nifty and Sensex experienced significant gains, led by auto, metal, energy, and IT stocks. Domestic buying and a decline in oil prices further boosted market sentiment. Major sectoral indices also saw positive movements, contributing to the overall rise.

The past week saw domestic markets close marginally lower amid volatility. Key highlights included SBI's 0.9% rise in Q1 net profit, Titan’s slight profit decrease, and Divi's Labs' 21% profit growth. Airtel, ONGC, and Marico were noted for upcoming Q1 results, while Infosys had significant regulatory updates.

Jajang iron ore block in Keonjhar, is one of the four iron ore mining leases which were acquired through an auction in 2020, JSW Steel said in a regulatory filing on Saturday. "JSW Steel due to un-economic operation, has submitted a notice for surrender of mining lease on August 3 in respect of Jajang Iron Ore Block...," it said.