The shares of Jindal Drilling and Industries jumped nearly 8 percent on March 5 after the company announced that it has acquired jackup rig 'Jindal Pioneer' from Singapore-based Discovery Drilling. The shares were trading at Rs 850 apiece, as seen at 1 pm.
The company said the acquisition was worth $75 million (over Rs 653 crore at current conversion rate). Notably, Discovery Drilling is a joint venture of the company itself.
The acquisition was funded by internal accruals and is aimed at improving operational synergies, increasing the scale of operations and profitability of the company, Jindal Drilling and Industries said in its exchange filing. "The rig is currently on a bareboat charter," the company added.
A jackup rig is a mobile offshore unit which is typically used to drill oil and natural gas from ocean beds.
The stock is currently significantly higher than its 52-week low of Rs 497 per share. However, it is also down from its 52-week high of Rs 991 per share.
The company had seen its consolidated net profit nearly double to Rs 66 crore in the third quarter of the current financial year. Its income from operations meanwhile rose sharply to Rs 239 crore. EBITDA margin also improved to 34 percent.
Also read: Our LIVE blog on the latest business updates
While announcing its Q3 results in January 2025, the company said it operates 5 offshore jackup rigs in India with the Oil & Natural Gas Corporation (ONGC). Our of these, 2 are owned while the rest are rented. The latest acquisition will be an addition to its already existing jackup rigs named Discovery-I, Jindal Supreme, Virtue-I, Jindal Star and Jindal Explorer.
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