JSW Infrastructure Ltd. has completed the acquisition of slurry pipeline business for Rs 1,617 crore from JSW Utkal Steel Ltd., a wholly owned subsidiary of JSW Steel Ltd, as per an exchange filing on Wednesday.
The acquisition was executed by way of slump sale, it stated. The business has been acquired for the transportation of iron ore from Nuagaon mines to Jagatsinghpur in Odisha.
JSW Infrastructure also announced that it has also entered into a long-term take-or-pay agreement with JSW Steel Ltd. for the transportation of iron ore slurry through the acquired pipeline. The agreement spans for a period of 20 years, according to the filing.
The company noted that the acquisition of slurry pipeline business follows shareholder approval obtained via postal ballot on Jan. 26. The business transfer agreement was executed on Tuesday, marking the completion of the transaction, it added.
The deal strengthens JSW Infrastructure's logistics portfolio and aligns with JSW Steel's raw material transportation strategy in Odisha, it further said.
Shares of JSW Infrastructure on Wednesday closed 3.12% higher at Rs 316 apiece on the NSE, compared to a 0.77% decline in the benchmark Nifty 50. The stock has risen by 32% in the last 12 months but slipped by 0.6% on a year-to-date basis.
Eleven out of the 14 analysts tracking the company have a 'buy' rating on its stock, while three suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential upside of 3.7%.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
