Shares of Jindal Saw Ltd. advanced the most in over a week after the company completed the 100% acquisition of Sathavahana Ispat Ltd. as per the resolution plan approved earlier.
The company, in accordance with the approved resolution plan, has purchased 10 lakh equity shares at a price of Rs 10 apiece for a total cash consideration of Rs 1 crore and proceeded with reudction of capital and the cancellation of the existing equity shares, it said in an exchange filing.
Pursuant to the said cancellation of the existing equity shares, Sathavahana Ispat Ltd. has now become a 100% subsidiary of Jindal Saw Ltd., the filing said.
Jindal Saw is engaged in the business of manufacturing submerged arc welded pipes and spiral pipes for the energy transportation sector and ductile iron pipes and fittings for water and wastewater transportation.
Sathavahana Ispat is primarily engaged in the manufacturing and selling of DI pipes, metallurgical coke, and pig iron.
Shares of Jindal Saw were up 1.85% to Rs 162.7 apiece, compared to a 0.23% gain in the benchmark Nifty 50, as of 12:48 p.m. on Thursday.
All three analysts tracking the stock suggest a 'buy,' according to Bloomberg data. The average 12-month consensus price target implies a potential upside of 18.4%.
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