Shares of Jindal Stainless rose 4% on March 29 after the stainless steel maker said it had struck a major strategic move with New Yaking to secure long-term nickel supplies.

The agreement aims to invest in developing, constructing and operating a nickel pig iron smelter in the Industrial Park of Halmahera Islands, Indonesia.

“Under the cooperation agreement, JSL (Jindal Stainless) will acquire a 49% stake at a consideration of approximately $157 million,” the company said in a bourse filing.

Shares of the company were up 1.8% at Rs 285 on the BSE at 10:28 am. The stock is up more than 1,000% over the past three years and 27% over the past three months.

Abhyuday Jindal, MD, Jindal Stainless, said, “This pioneering collaboration will enhance stakeholder value as JSL will acquire a stake in Nickel Supply, creating raw material security for its SS business. The acquisition will give JSL a clearer competitive advantage in Indian and international markets.”

Nickel is a key ingredient used to produce stainless steel. Currently, the company meets most of its nickel requirements from stainless steel scrap and nickel pig iron (NPI)/ferro nickel. The collaboration will secure sufficient NPI supply for Kinda Stainless.

The company has two stainless steel manufacturing bases in Haryana and Odisha, India, and an overseas manufacturing facility in Indonesia. Its product range includes stainless steel slabs, billets, coils, plates, precision strips, blade steel and coin blanks.