India’s third largest steel producer, JSW Steel Ltd surged 2.3% in the stock market on Tuesday, after it announced its plan to buy an 84-percent stake in Ispat Industries for $476 million. The company plans to expand its capacity in the country through the acquisition.As per the statement issued by the company, JSW will subscribe to 108 crore shares of Ispat Industries at Rs 19.85 per share, via preferential allotment. The shares of the JSW Steel Ltd jumped as the company is paying less for the deal than had been expected. JSW is buying the stock at a discount of 20 percent.“The company will subscribe to 108.66 crore equity shares of Ispat by way of preferential allotment at a price of Rs. 19.85 per piece,” JSW Steel said in a filing to the Bombay Stock Exchange.
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