Monnet Ispat surges nearly 13% on likely stake sale by promoters

NEW DELHI: Stocks of Monnet Ispat surged as much as 13 per cent in trade today on reports that Gautam Adani-led Adani Group and Sajjan Jindal-owned JSW Group are looking to buy a majority stake in the company's subsidiary Monnet Power. A report by TOI quoting sources said that the two groups may also be looking to take control over the management of Delhi-based Monnet Power for a consideration of $500 million (over Rs 3,100 crore).

The stock ended day 2.19 per cent up or Rs 1.15 at Rs 53.65. The stock hit an intra-day high Rs 59.30 and a low of Rs 53.15 during the trade.

Stock of JSW Group were trading mixed. Adani Group stocks were trading marginally lower.

According to the report, the deal is likely to be sealed in April.

The deal may help the promoters cut debt, which stood a whopping at Rs 10,000 crore at the end of FY14.

The acquisition, if it materialises, is expected to mark further consolidation in the power sector that has seen deals worth $4 billion since the Narendra Modi-led NDA government came to power in May last year, the report added.

The Times of India (TOI) quoted Jajodia, chairman and MD, Monnet Ispat as saying, "We have signed non-confidentiality agreements with buyers so won't be able to comment but the deal is likely to be sealed in April. Monnet Power has 1,050 MW coal-based power plants at Angul in Odisha and has plans to add 660 MW at the same site."