2 Multibagger stocks to merge and enter the league of top 10 global stainless steel producers 

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2 Multibagger stocks to merge and enter the league of top 10 global stainless steel producers 
Credit: © Reuters.

The shares of Jindal Stainless (Hisar) Limited (JSHL) hit a record high of ₹ 504.55 apiece as they gained 3.08% on Friday’s early trades. This happened after the company fixed Friday, March 09, 2023, as the record date for the merger of JSHL with Jindal Stainless Limited (NS: JIST ). The stock surpassed its previous high of ₹ 494.95 touched on February 03, 2023. Meanwhile, the shares of JSL were also trading near their record high of ₹ 275.30 apiece at ₹ 271.45 apiece.

The swap ratio for the merger of JSHL into JSL is 1:1.95. Therefore, for each share held in JSHL, shareholders will receive 1.95 shares of JSL. The appointed date for the deal was April 01, 2020, and it is likely to conclude in FY2023.

The company said that the rationale behind the merger is that the merged entity JSL, as an Indian MNC, would enter the league of top 10 global stainless steel producers. In addition, it would pave the way for the consolidation of its stainless steel business into one entity with a total capacity of 1.9 million tonnes per annum (mtpa). JSHL said that its merger with JSL will help in the consolidation of complementing strengths with stronger financial positioning.

Both companies have given multibagger returns in the past 6 months. JSL has given multibagger returns of 117.42% as its share price increased from ₹ 124.85 apiece to ₹ 271.45 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.17 lakhs today!

JSHL has also given multibagger returns of 103.83% in the past six months as its share price increased from ₹ 245.20 to ₹ 499.80 apiece. Therefore, if an investor would have invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.03 lakhs today!

Written by Simran Bafna

The post 2 Multibagger stocks to merge and enter the league of top 10 global stainless steel producers appeared first on Trade Brains.

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