Jindal Saw shares experienced a robust uptrend on Tuesday. The Jindal group firm's share price rallied, rising over 10% on the bourses during the morning trading session after the company's board approved 3 major investment proposals.
At 11:30 am, Jindal Saw shares were trading at ₹248.03, up by 6.96% on the National Stock Exchange.
Jindal Saw will incorporate a step-down subsidiary in the United Arab Emirates (UAE). "The company proposes to set up a 300,000 tons per annum (TPA) capacity seamless pipe manufacturing facility in Abu Dhabi (UAE) by way of incorporating a new step-down subsidiary to cater primarily to the oil and gas sector of the MENA region," Jindal Saw stated in its exchange filing.
Meanwhile, Jindal Saw Holdings FZE will enter into a joint venture agreement with Buhur for Investment Company LLC in Saudi Arabia to set up a new company. JSH will also form another joint venture with RAX United Industrial Company in the country to incorporate an additional new entity.
"The Company proposes to set up a Ductile Iron Pipe project in Kingdom of Saudi Arabia (KSA) by way of entering into JV agreement between Jindal Saw Holdings FZE, a subsidiary of the Company and RAX United Industrial Company, KSA by way of incorporating a new Company in KSA," the exchange filing read. The tentative time of completion for this project is 12-18 months.
The combined value of all three investment proposals amounts to $118 million.
Jindal Saw Share Price
So far this year, the shares of the company have struggled to trade in the green territory, declining over 11% on the NSE. Over the past 6 months period, the shares of the company have plummeted over 25%. However, Jindal Saw shares have gained heightened momentum in the last 5 trading sessions, marking a rise of 17% on the bourses.
