 "Mukand surges on transfer of special and alloy steel business to subsidiary")
Shares of Mukand is locked in upper circuit of 20% at Rs 55.30 on National Stock Exchange (NSE) after the company said its board has approved the transfer of special and alloy steel business to a yet-to-be-formed subsidiary for an enterprise value of Rs 1,590 crore.
“The board approved a proposal to transfer its special alloys and steel business, having an installed capacity of 370,000 MT per annum, as a going concern by way of a slump sale to a subsidiary company (to be formed) for an enterprise value of approximately Rs 1,590 crore, subject to deduction of debt and net working capital adjustment as on the date of transfer”, Mukand said in a statement.
The consideration will be paid in cash by the subsidiary and the company will seek approval from its shareholders.
The restructuring is intended to facilitate the possible introduction of a strategic partner, the company said.
Till 0925 hours, a combined 339,185 shares changed hands on the counter and there are pending buy orders for 201,337 shares on NSE and BSE. An average a combined sub 75,000 shares were traded daily in past two weeks on both the exchanges.
“The board approved a proposal to transfer its special alloys and steel business, having an installed capacity of 370,000 MT per annum, as a going concern by way of a slump sale to a subsidiary company (to be formed) for an enterprise value of approximately Rs 1,590 crore, subject to deduction of debt and net working capital adjustment as on the date of transfer”, Mukand said in a statement.
The consideration will be paid in cash by the subsidiary and the company will seek approval from its shareholders.
The restructuring is intended to facilitate the possible introduction of a strategic partner, the company said.
Till 0925 hours, a combined 339,185 shares changed hands on the counter and there are pending buy orders for 201,337 shares on NSE and BSE. An average a combined sub 75,000 shares were traded daily in past two weeks on both the exchanges.