Mahindra Ugine Steel Company has received an approval for sale of excess land of the company. The company will sell 65 acres out of the total land of around 122 acres of the Stampings Unit of the company situated at Pune district in Maharashtra. The board at its meeting held on March 27, 2012 has approved for the same.
The said land of 65 acres is an industrial land and will be sold as per the valuation report of an independent professional firm. However, the current valuation indicates a value of around Rs 89 crore. Further, the proposal of sale of the land is subject to necessary approvals, as may be required.
The proposal to sell the excess land is with a view to monetize the value of its unutilized assets and improve shareholder value by freeing up capital to reduce debt and facilitate growth.
Mahindra Ugine Steel Company is engaged in the manufacturing of alloy & special steel through Electric Arc Furnace (EAF) route & caters to the automotive, engineering, bearing & other industries. The company manufactures a wide array of products including skin components, underbody components, critical assemblies, chassis components and car body sheet metal (Body in White) parts with a total capacity of 30,000 metric tons.
