Mukand Ltd to transfer special & alloy steel business to a subsidiary

NEW DELHI: Mukand Ltd today 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.

Mukand Ltd, in which promoters held 73.36 per cent stake, as on September-end, said in a BSE filing that the move was aimed at facilitating introduction of a strategic partner in the company.

The company said its Board, at a meeting held today, has given nod for the transfer of the special and alloy steel business by way of a slump sale, subject to deduction of debt and net working capital adjustment.

The business has 3.7 lakh tonnes per annum installed capacity.

"The net consideration will be paid in cash by the subsidiary as per the terms of the business transfer agreement to be executed in this regard," the Mumbai-based firm said.

Mukand proposes to seek an approval of its shareholders by postal ballot for the transaction, which is again subject to requisite approvals.

"The above restructuring proposal is intended to facilitate the possible introduction of a strategic partner," it said.

The company scrip closed at Rs 46, up 0.44 per cent, on the BSE.