JTL Industries gains 6% after NCLT approves acquisition of RCI Industries

Industry:    2 months ago

JTL Industries shares jumped 6.2 per cent on BSE, logging an intra-day high at ₹72.2 per share. At 12 PM, JTL Industries’ share price was up 1.75 per cent on BSE at ₹69.12 per share. In comparison, the BSE Sensex was down 0.33 per cent at 82,052.42.

The market capitalisation of the company stood at ₹2,640.67 crore. The 52-week high was at ₹112.07 per share, and the 52-week low was at ₹59.7.

What led to a surge in JTL Industries’ shares?

The buying on the counter came after the National Company Law Tribunal (NCLT) approved the company’s proposal to acquire RCI Industries & Technologies.

JTL had entered a memorandum of understanding (MoU) with RCI during Q4FY25 for the production of up to 200MT/month of copper and brass alloys via job-work. With this approval, the plant now comes under complete ownership of JTL and is expected to significantly contribute to the topline by FY27.

This value-accretive acquisition is expected to open new avenues and pave the way for entry into new niche markets – primarily defense components and supply of bullet shells and coin-related components to Mint Factory.

“The acquisition of RCI Industries & Technologies Ltd. is a strategically important step in JTL’s evolution. It offers us an immediate and well-structured entry into the high-potential copper and non-ferrous metals segment—sectors witnessing rising demand from infrastructure, electrical, and defence applications. The approval for this acquisition serves as a tool to diversify and expand our presence across new metals, new markets, and new product categories,” said JTL Industries.

Strategic rationale:

  • Expanded product mix:RCI’s operational base in Baddi and its legacy portfolio of copper products will allow JTL Industries to diversify into value-added offerings and serve multiple niche segments.
  • Reduced cyclicality: The addition of copper products is expected to lessen JTL Industries’ reliance on the cyclical nature of steel prices, thereby supporting more stable margins.
  • Capacity and capability boost: The acquisition brings both increased production capacity and enhanced manufacturing capabilities to JTL Industries’ platform.
JTL Industries anticipates that the integration will be seamless and expects the acquisition to significantly augment its top line and earnings by FY27, creating long-term value for all stakeholders.
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