Jindal Saw Shares Surge 7.5% After $118 Million Expansion Plan in Middle East
Jindal Saw Ltd. shares climbed sharply on Tuesday after the company unveiled a substantial capital investment strategy aimed at expanding its presence in the Middle East's iron and steel industry.
The board greenlit a $118 million investment package, including a new facility in the United Arab Emirates and two joint ventures in Saudi Arabia, signalling a decisive move toward international market dominance.
Strategic Push into MENA
The investment underscores Jindal Saw's ambitions to scale its operations in the Middle East and North Africa (MENA) region, targeting the robust oil and gas ecosystem.
The centrepiece of this expansion is a $105 million pipe manufacturing plant to be established in Abu Dhabi. Designed to produce 300,000 tonnes annually, the facility is expected to be operational within a 12 to 36-month horizon and will primarily serve regional energy infrastructure projects.
Simultaneously, the company has entered into two strategic joint ventures in Saudi Arabia, each with a 51% equity holding.
The first, a $10 million collaboration with Buhur Investment, will focus on the production of helically spiral welded (HSAW) pipes.
The second, a $3 million partnership with RAX United Industrial Company, aims to manufacture ductile iron pipes.
These ventures are aligned with Saudi Arabia's Vision 2030 industrial diversification agenda and further consolidate Jindal Saw's regional footprint.
Stock Market Cheers the Announcement
The news created a robust positive response from the market, with Jindal Saw's stock price witnessing a significant surge.
On Tuesday, the stock's price jumped over 7.5%, trading at ₹ 250 a piece as of 11:47 a.m. Earlier in the trade, the stock price had touched an intraday high of ₹255 per share, after having started the day at an intraday low of ₹238.20.
This performance was in stark contrast to the slight 0.05% gain recorded in the NSE Nifty 50 Index on the same day.
The total volume traded on the day for the shares of Jindal Saw was 25 times its 30-day average, reflecting high investor demand and market action following the strategic capital expenditure announcement.
This latest push is part of a larger traction in the last two trading sessions in which the share prices have collectively risen by over 16%. The heavy market response reflects the strength of investors' belief in the direction of the company's strategy and the drive to expand its global base.
Execution and Regulatory Framework
Jindal Saw has stated that the execution of these projects is contingent on securing necessary governmental and regulatory clearances. The company reaffirmed its commitment to adhering to all compliance requirements to ensure smooth implementation across jurisdictions.
Global Ambitions Take Centre Stage
This bold capital allocation reflects a strategic pivot for Jindal Saw, positioning it to tap into new demand cycles while diversifying geographically. As global infrastructure spending gains momentum and regional governments push for industrial localisation, the company is well-poised to capture a larger share of the pipeline and speciality steel market across the MENA region.
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