Jindal Group stocks closed in the green today with the highest jump witnessed by JSW Holdings Limited which rose around 11 percent closing at Rs 4,825. Apart from the same, others in the list include JSW Steel Limited with a closing price of Rs 774 (a gain of 2.3 percent) and JSW Energy Limited closing at Rs 264 (a gain of 1 percent).
Such sharp movements in stock prices are aligned with the buzz regarding Mr. Sajjan Jindal, Chairman of the JSW Group, through a privately-owned company, showing interest to acquire a stake in MG Motor India, a subsidiary of Shanghai-based SAIC Motor.
Reports suggest that he will possess around 45-48 percent stake in MG Motor India. In addition, the Indian employees and the dealers are likely to hold 5-8 percent and, in total, plan to hold at least 51 percent of the company’s equity, with the minority stake held by the Chinese entity.
This likely move, further, sees the top management having a larger share of Indian members on the Board and having the vision to make it an Indian company.
The JSW Group officials communicated that the listed companies under its umbrella, i.e., JSW Steel and JSW Energy will not be having any exposure to the venture.
MG Motor has paved its way to Indian markets under the leadership of SAIC Motor Corporation Limited which is marked as the world’s 7th largest automobile company. The company comes in with a clear vision of building the ‘next-generation’ automotive company. Some of its offerings include MG Astor, MG Hector, MG Gloster, etc.
Written by Amit Madnani
