BMW Industries shares rise 10% after investment announcement

BMW Industries' shares rose 10% to ₹49.51 on March 25, reaching a two-week high. This increase followed the company's announcement of a partnership with the Ministry of Steel. They signed a Memorandum of Understanding (MoU) related to the Production Linked Incentive Scheme for specialty steel. The new project will involve building a greenfield downstream steel complex in Bokaro, Jharkhand. BMW Industries aims to produce various coated steel products at this facility. The Managing Director, Harsh Bansal, expressed pride in being part of the initiative, emphasizing its role in enhancing the company’s capabilities and expanding its market presence. The planned investment for the complex is estimated at ₹800 crore, which will be funded through company resources and borrowing. The complex is expected to produce a significant amount of cold rolled and galvanized steel products annually. Despite recent declines, BMW Industries’ stock has increased by 286% over the past five years. The company has faced challenges, including a 34% drop in shares over the last eight months. However, it remains one of the leading manufacturers in the steel sector in India.