JSW Ispat shoots up 7% after completing acquisition of 100% equity share capital of Mivaan Steels

25 Feb 2022 , 09:58 AM

JSW Ispat Special Products Limited (Formerly known as Monnet Ispat and Energy Limited) has completed the acquisition of 100% equity share capital of Mivaan Steels Limited (MSL) on February 24, 2022, consequent to which MSL has become a wholly-owned subsidiary of the company.

The company stocks were trading at Rs30.70 per piece up Rs2.00 or 6.97% on the BSE, at around 10.02 am, on Friday. 

The Board of Directors of the Company had approved the acquisition at its meeting held on February 16, 2022. Giving its rationale behind the acquisition, the company had said it has manufacturing facilities at Raigarh and Raipur.

The Company is proposing to transfer the Specified Undertaking, on a going concern basis, by way of a slump sale through a scheme of arrangement under the Companies Act, 2013, to MSL, upon it becoming a wholly owned subsidiary of the Company.

The “Specified Undertaking” means the business undertaking of the Company pertaining to the manufacturing facilities at Raipur and mining facilities at Kanker and associated coal washery operations at Patherdih and certain other assets and properties.

The manufacturing facilities at Raipur comprises of a sponge iron manufacturing plant with a capacity of 0.3 MTPA, ferro alloy plant and steel manufacturing plant with a capacity of 0.25 MTPA.