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One of the few successful turnaround stories in the iron and steel industry, Jai Balaji Industries has been included in multiple indices of the National Stock Exchange.
The company has made its entry into Nifty 500, Nifty 500 Multicap 50:25:25, Nifty SmallCap 250 and NSE Mid and Small Cap index.
The inclusions will be effective from March 28.
The inclusion of the stock was part of the periodic review by the Index Maintenance Sub-Committee (Equity) of NSE Indices. The company was included in the MSCI Smallcap Index last November.
Post the inclusion in the MSCI index, institutional holding in the company rose from 0.67 per cent on September 30, 2023, to 2.57 per cent by December-end. The inclusion in NSE indices is also likely to boost institutional buying in the stock.
Jai Balaji Industries has scripted a smart turnaround in the last two years after it faced bankruptcy in the earlier part of the decade. The company has now brought its debt down to ₹560 crore and retired all the loans held by asset reconstruction companies last December. In 2024 end-January and February, the company’s bank loan facilities were rated for the first time in almost a decade by Crisil.
Jai Balaji Industries is also investing in ₹1,000 crore in capacity expansion at its iron and steel works in Durgapur, adding to its capacity in hot metal capacity, ductile iron pipes and high grade ferro alloys.
In the nine-month period of April-December of FY24, Jai Balaji Industries recorded revenue of ₹4,627 crore and net profit of ₹607 crore.
In the last one year, the company’s share price has risen multi-fold to ₹1,241 on Monday from ₹49 on March 6, 2023. The market capitalisation of the company was at about ₹20,000 crore.
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