Shares of Usha Martin
were trading 7% down in Tuesday’s afternoon session after media reports stated that Tata Steel will acquire its Jamshedpur steel plant.
As per media reports, the acquisition worth Rs4,600cr was agreed upon in September last year.
Reports further suggest that the proceeds from the deal will be in an SBI escrow account and will be utilised to repay the wire rope manufacturer's debt. All employees of Usha Martin will also be transferred as part of the divestment.
Meanwhile, the company, in its filing after markets hours to the exchanges on Monday, informed that it has appointed Anirban Sanyal as Chief Financial Officer, who will replace Rohit Nanda with effect from April 9.
Usha Martin Ltd's share price is currently at Rs37.80, down by Rs2.85 or 7.01%, from its previous close of Rs40.65 on the BSE.
The scrip opened at Rs40.25 and has touched a high and low of Rs41.15 and Rs37.60, respectively. So far, 21,05,836 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs1,238.61cr.