JSW Steel shares surge over 5%, here's why

Shares of JSW Steel jumped more than 5 per cent in Thursday's trade after its US subsidiary (JSW Steel USA) tied up long-term financing of $182 million with two Italian banking institutions -- Intesa Sanpaolo and Banco BPM -- for its Plate Mill modernisation project in Texas.

The stock surged 5.05 per cent to trade at Rs 676.95 against its previous close of Rs 644.40 in early deals. It touched an intraday high of Rs 678.80.

Considering yesterday's closing, the steel maker's shares traded nearly 24 per cent higher from their 52-week low, hit in May this year, and around 18 per cent lower from their April high.

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"Out of the total financing, $70 million is covered under SACE (Italian Export Credit Agency) guarantee and the balance $112 million is a term loan," JSW Steel stated in an exchange filing.

"The SACE guarantee is provided with the intention of promoting Italian exports. Intesa Sanpaolo (IMI Corporate & Investment Banking Division) acted as SACE Agent and coordinator of the commercial tranche," it added.

Last week, the flagship company of JSW Group reported a Rs 915 crore consolidated loss for the July-September (Q2) quarter, hit by the impact of high-cost inventory and lower steel prices.

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However, revenue from operations improved by 29 per cent year-on-year (YoY) to Rs 41,778 crore in Q2.

Meanwhile, JSW Group's financial arm, JSW Holdings, zoomed 11.89 per cent to trade at Rs 4,386 in early trade. The stock hit an intraday high of Rs 4,445.95.

Indian equity benchmarks ticked higher in today's trade amid strong buying interest in metal stocks.