Shares of Jindal Saw Ltd shot up 10% on Tuesday, 10 June, after the company announced additional investment plans for the Middle East.

The firm said on Monday, 9 June, that the board had approved three additional international investments totalling up to $118 million to increase its footprint in the Middle East’s iron and steel sector.

The largest of the projects entails establishing a 100% owned step-down subsidiary in Abu Dhabi, United Arab Emirates, to build a seamless pipe manufacturing facility with a capacity of 300,000 tons per year.

The unit will focus on the MENA region’s oil and gas sector. The project is projected to cost up to $105 million and take around three years to complete.

Jindal Saw’s Saudi subsidiary, Jindal Saw Holdings FZE, will invest in two joint ventures. The first joint venture will be with Buhur Investment Company LLC to establish a helical spiral welded (HSAW) pipe factory. Jindal will own a 51% share and contribute up to $10 million. This project’s projected timeline is two years.

The second Saudi joint venture is with RAX United Industrial Company for a ductile iron pipe manufacturing plant. This project also requires a 51% share and a capital commitment of up to $3 million. It is planned to be completed between 12 and 18 months.

All three companies to be founded have yet to be incorporated. All essential regulatory and government clearances will be sought as needed. Each investment will be made using cash.

Jindal Saw’s shares are now selling at less than 5 times enterprise value to earnings before interest, tax, depreciation, and amortization (EBITDA) for fiscal year 2027.

At 12:19 pm, the shares of Jindal Saw were trading 7.08% higher at Rs 248.30 on NSE.

The future of investing is here!
Unicorn Signals leverages advanced AI technology to provide you with powerful market predictions and actionable stock scans. Download the app todayand 10x your trading & investing journey!