Post by : Mariam
Al-Faris
Shares of Jindal Saw Ltd went up by 10% on Tuesday, June 10, after the company announced new investment plans for the Middle East.
On Monday, June 9, Jindal Saw’s board approved three new international investments worth up to $118 million to expand its presence in the Middle East's iron and steel sector.
The largest project is setting up a fully owned subsidiary in Abu Dhabi, UAE, to build a seamless pipe manufacturing facility with a capacity of 300,000 tons per year. This facility will cater mainly to the oil and gas industry in the Middle East and North Africa (MENA) region. The project will cost around $105 million and is expected to take about three years to complete.
Additionally, Jindal Saw’s subsidiary in Saudi Arabia, Jindal Saw Holdings FZE, will invest in two joint ventures. The first joint venture is with Buhur Investment Company LLC to build a helical spiral welded (HSAW) pipe factory. Jindal Saw will hold a 51% stake in the factory and will invest up to $10 million. This project is expected to take two years.
The second joint venture in Saudi Arabia is with RAX United Industrial Company to build a ductile iron pipe manufacturing plant. Jindal Saw will also own 51% of the plant, investing up to $3 million, with completion planned in 12 to 18 months.
All three projects are still in the process of being established, and necessary regulatory approvals will be sought. The company will use cash for these investments.
Jindal Saw’s shares are currently trading at a low price, around 5 times its expected earnings for fiscal year 2027. By 12:19 pm, the share price had risen by 7.08%, reaching Rs 248.30 on the NSE.
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