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JSW Steel surges as LIC raises stake in steel stock

JSW Steel surges as LIC raises stake in steel stock

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By CNBCTV18.com Sept 5, 2022 3:04:16 PM IST (Updated)

LIC hiked its stake in JSW Steel from a previous 5 percent to 7 percent with an investment of about Rs 3,200 crore as the long-term prospects of the steel sector remain intact.

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Shares of JSW Steel jumped as much as 3 percent in trade on Monday as Street sentiment remained positive on the stock after state insurer Life Insurance Corporation of India (LIC) raised its stake in the Sajjan Jindal-led steel firm. JSW Steel shares were trading at Rs 678.75, up 2.6 percent on BSE. The stock has hit the day's high at Rs 680.50 so far.
LIC hiked its stake in JSW Steel from a previous 5 percent to 7 percent with an investment of about Rs 3,200 crore as the long-term prospects of the steel sector remain intact.
In a statement, JSW Steel said that the state insurance behemoth acquired 4.86 crore shares or 2.010 percent at an average cost of Rs 649.83 from the open market between August 3 and September 1. This came on top of LIC's existing holding of 5.002 percent or 12.09 crore shares.
JSW Steel is the flagship firm of the diversified JSW Group and is a leading integrated steel company in the country with a capacity of 28 MTPA (million tonnes per annum) in India and abroad.
Meanwhile, LIC shares traded lower on bourses, down well over half a percent. At 1.03 pm, LIC stock price was trading at Rs 661 apiece, down 0.59 percent on BSE. The insurance stock hit the day's low at Rs 660.50 so far.
LIC made its debut on the bourses on May 17 this year and was listed at Rs 867.20, at an 8.6 percent discount to the issue price of Rs 949.
Earlier, a Credit Suisse report had warned the resilience in domestic steel prices is unlikely to sustain with Street turning cautious on them.
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