Jindal Steel shares gain 2% on blast furnace contract with RINL

Shares of Jindal Steel and Power Limited traded 2 percent higher to Rs 739 early on December 26 after the company announced inking a deal with Rashtriya Ispat Nigam Limited (RINL) for the operationalisation of its Blast Furnace-3 (BF-3).

“The furnace, set to be lit up on December 30, will boost production by 2 lakh tonnes of hot metal per month,” the company said in an exchange filing on December 23.

At 9:20am, the counter was trading at Rs 736, up 1.4 percent from the previous close on the NSE. Since the start of the year, the stock has given a return of over 22 percent on the bourses.

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The company also added that the tie-up with RINL will release additional liquid steel for slab casting and onward rolling into hot rolled coils from JSP’s upcoming stat Strip Mill at Angul, slated for commissioning soon.

The restart of the BF-3 is planned for December 30, 2023 at a capacity of 2 lakh tonnes of hot metal a month. On Friday, RINL said Jindal will provide working capital support or raw material supply of Rs 800-900 crore under the pact signed between the companies. In return, RINL will ensure the supply of 90,000 tonnes of cast blooms to the private steel company, JSPL said in a statement.

The company produces steel and power through backward integration from its captive coal and iron-ore mines.

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