Insurance behemoth Life Insurance Corporation has hiked stake in Sajjan Jindal-led JSW Steel to 7 per cent from 5 per cent with an investment of about ₹3,200 crore as the long-term prospects of steel sector appears better compared to the global peers.
LIC had acquired 4.86 crore shares or 2.010 per cent from the open market between August 3 and September 1, said JSW Steel in a statement. It already owns 12.09 crore shares or 5.002 per cent.
The average share price of JSW Steel has been going up from ₹563 in June to ₹666 in August.
Though the steel demand and prices are weak globally, the domestic off-take is robust due to the government spending.
Moreover, JSW Steel has added a fresh capacity of 5 million tonne and is expected to benefit from the uptick in demand.