[ad_1]
Shares of Jindal Stainless Limited (JSL) advanced 10 per cent at Rs 135.40 on the BSE in the intra-day trade on Thursday after the company signed a memorandum of understanding (MoU) with Tata Steel Mining (TSML).
“The MoU is signed with an aim to jointly unearth the chrome ore locked up in the boundary between our mines located in Sukinda of Jajpur district, Odisha,” JSL said in a statement.
It added: This would help conservation of chromite ore which otherwise would have been left unmined forever. This is a win-win-win partnership for the State of Odisha, TSML and JSL. Both the companies would now initiate steps to get necessary statutory approvals from concerned authorities before jointly starting mining operations..
JSL is the largest manufacturer of stainless steel in India with a capacity of 1.1 MTPA. The plant comprises ferro-alloy facilities with world-class technology and equipment. The manufacturing complex, equipped with a captive power generation facility, is eventually scalable up to 3.2 MTPA of stainless steel production.
Tata Steel Mining (TSML, formerly known as TS Alloys Ltd) is a 100 per cent subsidiary of Tata Steel. The company is working to develop commercial mining opportunities in addition to ferro alloys business.
In the past three months, the stock of JSL has zoomed 75 per cent, as against a 10 per cent rise in the S&P BSE Sensex.
Separately, rating agency India Ratings and Research (Ind-Ra), on July 17, had upgraded JSL’s long-term credit rating to ‘IND A+’ which is three levels up from its earlier rating of ‘IND BBB+’. The short-term credit rating of the company has also been upgraded to ‘IND A1+’.
The key reasons for the upgrade include accelerated deleveraging, supported by the prepayments of debt, which was originally scheduled to be repaid over FY22-FY23, in FY21 along with a strong operating performance. The rating also factors in the benefit of proposed amalgamation, coupled with strong group linkages considering the same line of business along with strong operational, strategic, and financial linkages.
Ind-Ra expects JSL’s business and financial profile to largely sustain post the merger, supported by the industry-leading scale of operations and similar financial metrics, further augmented by the benefits of scale and greater financial flexibility.
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
[ad_2]
Source link
