JSW Group Inks Pact With Korea's POSCO To Set Up Steel Plant In India

JSW Group and Korea's POSCO Group have signed a Memorandum of Understanding to develop a steel plant with an initial capacity of 5 million tonne per annum in India.

POSCO is a steel manufacturer based in South Korea. The MoU between both groups will explore collaboration in the steel, battery materials, and renewable energy sectors of India, according to a filing by JSW Energy Ltd.

"JSW’s leading manufacturing presence and strong project execution capabilities, combined with POSCO’s technological excellence, would create a strong platform for developing cutting-edge solutions for the Indian steel and energy sectors," the filing said.

The two groups will also explore collaborations in the areas of battery materials related to electric vehicles and renewable energy to meet the captive requirements of the proposed integrated steel plant, according to the statement.

The stock rose today after falling consecutively in the previous three sessions.

Shares of JSW Energy rose as much as 1.33% before paring gains to trade 0.89% higher at Rs 648.60 apiece, as of 10:28 a.m. This compares to a 0.5% decline in the NSE Nifty 50.

The stock has risen 58.6% on a year-to-date basis and 68% in the last 12 months. Total traded volume so far in the day stood at 0.31 times its 30-day average. The relative strength index was at 35.4.

Of the 13 analysts tracking the company, seven maintain a 'buy' rating, four recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 12%.