Mukand has received its board’s approval to transfer its cold finished bars and wire business, having an installed capacity of 6000 MT per month, to a newly formed subsidiary for a consideration off about Rs 252.50 crore.
The amount is to be paid by the subsidiary partially by issue of share at premium and partially by way of cash on such terms as may be agreed to by the board of directors. The company’s board has also approved a proposal to convert this subsidiary into joint venture company (JVC) with Sumitomo Corporation, Japan (60% Mukand and its group company and 40% Sumitomo).
Mukand is engaged in manufacturing of alloy and stainless steel long products. Earlier known as Mukand Iron & Steel Works; the company operates in four segments namely steel, industrial machinery, road construction and other products.
