“After receipt of the approval of the Board of Directors and the Members of VSL Steels Limited (the Seller); the company has completed on December 23, 2020, the acquisition of movable and immovable assets relating to the pig iron plant of the Seller situated at Paramenahally Village, Hiriyur, Chitradurga District - 577598, Karnataka.
The company is in process to renovate those assets and to obtain necessary approvals / permissions / licenses from statutory / government authorities for commencement of operations,” company informed the exchanges on Wednesday.
The company at its meeting held on September 12, 2020 had granted its in-principle approval for acquisition of movable and immovable assets relating to the pig iron plant of VSL Steels Limited for a cash consideration of not exceeding Rs135cr payable in instalments.
The company had shared that the object of proposed transaction is to expand production capacity of Pig Iron of the company. After completion of the Transaction, the production capacity of pig iron will increase from 3,91,400 Metric Tonnes per annum to 5,41,400 Metric Tonnes per annum.
At around 9.45 am, Kirloskar Ferrous Industries Ltd was trading at Rs138.80 per piece up by Rs2.75 or 2.02% on the BSE.