JSW Steel Subsidiary Approves Share Buyback Worth Rs 1,676 Crore
JSW Steel's board has approved the tendering of 22.26 crore shares held by the company in the subsidiary under the proposed buyback offer.
Piombino Steel Ltd., a subsidiary of JSW Steel Ltd., has approved a buyback of shares worth Rs 1,676.45 crore, according to an exchange filing on Tuesday.
As part of the buyback exercise, PSL would be buying a total of 22.26 crore equity shares at price of Rs 75.3 apiece, the filing added. In connection with the same, JSW Steel said its board has approved the tendering of 22.26 crore shares held by the company in PSL under the proposed buyback offer.
This constitutes a small portion of 508 crore equity shares held by JSW Steel in the subsidiary. The company's total shareholding in PSL presently stands at 83.28%.
In a separate development, JSW Steel informed the exchanges that its board has approved the transfer of its Salav unit located in Salav village of Maharashtra's Raigad to its wholly owned subsidiary JSW Green Steel Ltd. on slump sale basis.
The unit has a direct reduced iron capacity of 0.9 million tonnes per annum.
Notably, JSW Green Steel was incorporated in February last year for the purpose of setting up a 4 MTPA integrated green steel plant, in phases, as a part of JSW Steel's plan for reducing its carbon footprint.
Shares of JSW Steel on Tuesday closed 0.03% higher at Rs 1,061.7 apiece on the National Stock Exchange, compared to a 0.04% rise in the benchmark Nifty. The stock has risen by 29.2% in the last 12 months and declined by 17.8% on a year-to-date basis.
Twenty out of the 35 analysts tracking the company have a 'buy' rating on the stock, five recommend 'hold' and 10 suggest 'sell', according to Bloomberg data. The average of 12-month analysts' price targets implies a potential downside of 5.1%.
