The shares of JSW Group's flagship company JSW Steel dropped as much as 4.91% to an intraday low of ₹1,104 apiece on the National Stock Exchange on Wednesday.

The dip in share price happened shortly after the company announced a joint venture (JV) with JFE Steel Corporation, Japan, where in the integrated steel business of Bhushan Power and Steel Limited (BPSL) in Odisha will be transferred to a 50:50 JV between the two companies. However, it should also be noted that majority of the stocks in Nifty Metal index traded in red today with JSW Steel being the biggest loser.

As part of the joint venture, JFE Steel will invest a total of ₹15,750 Cr in two tranches for a 50% stake in the venture, according to the statement by JSW Steel. The joint venture aims to increase the capacity of BPSL from 4.5 million tonnes to 10 million tonnes in 2030.

"We are delighted to announce this strategic Joint Venture with JFE Steel for our BPSL business undertaking. JFE has been a trusted partner for JSW Steel since 2009, and the relationship has strengthened over the years as both companies have collaborated on numerous initiatives. Today’s announcement brings together JSW’s expertise in India with JFE’s technological strengths, and will enable the joint venture to realise its growth potential and produce a variety of value‐added steels," said Jayant Acharya, Joint Managing Director and CMD of JSW Steel.

"India is the fastest growing major economy as well as steel market in the world, and this transaction enables JSW to accelerate its growth in a financially prudent manner, and create further value for its stakeholders," he added.

The shares of JSW Steel ended 1.55% lower at ₹1,144 apiece on the NSE on Wednesday.