MUMBAI – JSW Steel Ltd has solidified its investment in JSW Paints, with the steel giant finalizing a capital commitment of INR 750 crore and witnessing its shares climb to Rs. 783.80 on the Bombay Stock Exchange (BSE). This strategic move comes as part of the company’s broader initiative to diversify beyond its traditional steel manufacturing activities.
On Wednesday, JSW Steel completed an equity share allotment that increased its ownership in JSW Paints to approximately 12.84%, which will adjust to 11.85% upon full dilution. The acquisition of an additional equity stake involved 2,94,82,565 shares, marking a significant enhancement of the company’s interest in the paint segment.
Today, the market responded positively to this development, with trading volumes for JSW Steel shares surging. Over 41k shares were traded, and the stock experienced an intraday price fluctuation ranging from Rs.767.25 to Rs.776.45.
The promoters of JSW Steel maintain a strong grip on the company, holding nearly half of its ownership at 44.80%. This move into the paint sector represents a strategic expansion for JSW Steel as it seeks to broaden its portfolio and reinforce its position in key Indian markets.
The investment plan for JSW Paints was initially outlined on July 23, 2021, and has now been fully realized with the latest equity share allotment. As a BSE group ‘A’ entity, JSW Steel’s increased stake in JSW Paints is a testament to its growth strategy and commitment to investing in related industries that complement its core business operations.
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