Mukand Ltd divests 30% equity stake of Mukand Sumi Special Steel Ltd

The Board of Directors of Mukand Ltd at its meeting held on August 31, 2020, had approved the proposal to sell/transfer or otherwise dispose-off in one or more tranches, over a period of 12 months, upto 2,12,08,729 equity shares, constituting upto 51% of equity share capital of Mukand Sumi Special Steel Limited ("MSSSL"), a Joint Venture of the Company ("Sale Shares"), to any one or more of the Promoter Group Entity(ies) of the Company ("Proposed Transaction").

The Company had announced that a Share Purchase Agreement has been executed on 5th November, 2020, amongst the Company, MSSSL and Jamnalal Sons Private Limited, an entity belonging to promoter group of the Company & the buyer identified, for the Proposed Transaction.

The approval from the Competition Commission of India for the Proposed Transaction has been received on 30th December, 2020.

On 31st December, 2020, Jamnalal Sons Private Limited has completed first tranche of the Proposed Transaction by successfully purchasing 1,24,75,723 equity shares of MSSSL, constituting 30% of the issued and paid up equity share capital of MSSSL ("First Tranche"), from the Company, for an aggregate consideration of INR 713,61,13,556/- (Indian Rupees Seven Hundred Thirteen Crores Sixty One Lacs Thirteen Thousand Five Hundred and Fifty Six Only).

After completion of the aforesaid transaction, the Company will continue to retain (i) ownership of its alloy steel manufacturing assets in Ginigera, Karnataka, & (ii) income derived from sale of its alloy steel products, manufactured in Ginigera, Karnataka, to its joint venture, MSSSL.

Shares of MUKAND LTD. was last trading in BSE at Rs.66.05 as compared to the previous close of Rs. 62.8. The total number of shares traded during the day was 41524 in over 507 trades.

The stock hit an intraday high of Rs. 67.8 and intraday low of 62.45. The net turnover during the day was Rs. 2714061.

Source : Equity Bulls

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