Monnet Ispat gains on stake sale buzz

NEW DELHI: Shares of Monnet Ispat surged over 5 per cent in Wednesday's trade after reports suggested that US-based TPG, Blackstone and Singapore-based SSG Capital expressed formal interest in buying a controlling stake in the debt-ridden company.

Following the development, the scrip rose 1.55 per cent to Rs 29.50 on BSE. The stock opened at Rs 30.20 and touched an intraday high and low of Rs 34 and Rs 29.30 respectively.

However, other steel manufacturers such as JSW Steel and Tata Steel were trading lower amid race with foreign players to buy stake in the troubled alloy-maker that is now in bankruptcy courts for loan defaults. JSW Steel fell 2.56 per cent to Rs 236.10 while Tata Steel shed 1.19 per cent to Rs 646.35 on BSE.

Last July, the NCLT had admitted the insolvency proceedings against Monnet Ispat and Energy after the bankers, led by the State Bank of India, confirmed the default amount at Rs 1,539 crore. Monnet Ispat was the second such company to be admitted for bankruptcy proceedings, ET reported.

Monnet Ispat had reported Rs 400-crore loss for April-June quarter as lower sales and higher interest cost dented its margins, marking its 12th consecutive quarter of losses.