Steel stock jumps after signing a MoU with the Ministry of Steel (MoS), Government of India (GOI)

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Steel stock jumps after signing a MoU with the Ministry of Steel (MoS), Government of India (GOI)

Started in 1976 as a small-scale Iron Foundry unit, Jayaswal Neco Industries Limited (Foundry Division) is now a producer of Iron & steel castings.

On Tuesday, shares of Jayaswal Neco Industries Ltd jumped 3.51 per cent to Rs 80.46 per share from its previous closing of Rs 77.73 per share. The stock has a 52-week high of Rs 94.30 per share and a 52-week low of Rs 26.06 per share. The shares of the company saw a Spurt in Volume by more than 1.10 times on the BSE. The company has a market cap of Rs 7,800 crore and the stock has given multibagger returns of 209 per cent from its 52-week low of Rs 26.06 per share.

The recent rise in Jayaswal Neco Industries Limited's stock is attributed to the execution of a Memorandum of Understanding (MoU) with the Ministry of Steel, Government of India, on February 9, 2026. This agreement allows the company to participate in the Production Linked Incentive (PLI) Scheme 1.2 for Specialty Steel. Specifically, the company has committed to the "Capacity Augmentation" option under the category of "Alloy Steel including Stainless Steel Rolled-Long Products," utilising its existing steel-making infrastructure to meet new production goals.

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To fulfil the terms of this agreement, Jayaswal Neco has committed to investing Rs 45.08 crore into its facilities. The MoU outlines a structured enhancement in Annual Production, targeting 18,000 tonnes per annum (TPA) in FY 2026-27, eventually scaling to 80,000 TPA by FY 2029-30. The company is required to submit annual incentive claims within seven months of the end of each respective financial year, with disbursements contingent upon the scheme's guidelines and budgeted outlay.

About the Company

Jayaswal Neco Industries Limited (JNIL) is the flagship company of the NECO Group of Industries. Started in 1976 as a small-scale Iron Foundry unit, Jayaswal Neco Industries Limited (Foundry Division) is now a producer of Iron & steel castings. The Company is engaged in the manufacturing and supply of billets, rolled products, pig iron & skull, sponge iron, pellets, steel and Iron & steel castings.

Disclaimer: The article is for informational purposes only and not investment advice.