JSW Steel shares surge 2% on joint venture agreement with POSCO Group

Shares of billionaire Sajjan Jindal-led JSW Steel rose as much as 2% to hit an intraday high of ₹1,240 on Friday, April 16, on National Stock Exchange (NSE) after the company announced a joint venture agreement with POSCO Group. Following the JV agreement, Saffron Resources Private Limited will become a 50:50 joint venture company between JSW Steel and POSCO and the company will set up a six million tonne per annum steel plant in Odisha.

"Board of Directors of JSW Steel Limited at its meeting held on April 17, 2026, has approved entering into a share subscription and joint venture agreement, with POSCO and POSCO India Private Limited through which Saffron Resources, a wholly owned subsidiary of the company would become a 50:50 joint venture between the company and POSCO Group. The proposed joint venture would set up a greenfield 6 MTPA integrated steel plant at Odisha," JSW Steel said in an exchange filing.

JSW Steel said that Saffron Resources possesses 887 acres of land in Odisha which will be used to set up the proposed 6 MTPA steel plant.

As per the agreement POSCO will subscribe to shares of Saffron for a consideration of ₹50.8 crore and both the companies will have the right to appoint equal number of directors in Saffron.

JSW Steel added that issuance of equity shares by Saffron to POSCO Group would not fall within the ambit of the related party transactions.

"The Joint Venture will deepen strategic ties between the two steel producers. An association with POSCO Co., Ltd will enable the Company to form a strategic partnership for access to technology and manufacturing of high-grade steel products for automotive and other applications," JSW Steel said as the rationale behind forming the JV.

In a separate development, JSW Steel last week said that its crude steel production in financial year 2026 rose 8% to 30.14 million tonnes.

The company's Indian operations saw its production rise by 8% to 29.25 million tonnes and production in United States remained flat 0.83 million tonnes.

As of 2:21 pm, JSW Steel shares traded 1.83% higher at ₹1,237, outperforming the NIFTY50 index which was up 0.5%.