The Board of Directors of Usha Martin Limited (the "Company") at its Meeting held on 22nd September 2018, which commenced at 1:30 P.M. and concluded at 3.30 P.M., has approved the sale and transfer of the Company's steel business undertaking ("Steel Business") to Tata Steel Limited or its subsidiaries ("TSL") through a slump sale on a going concern basis.
The Steel Business includes a specialized steel alloy manufacturing plant, an operative iron ore mine, a coal mine under development and captive power plants. TSL is engaged in the business of manufacturing steel. TSL is not a part of the Company's promoter and promoter group and therefore, such transfer as and when effected will not be a related party transaction.
To formalize the terms and conditions of the transfer of the Steel Business to TSL, a business transfer agreement ("Agreement") has been executed between TSL and the Company. The transfer of the Steel Business to TSL is subject to the satisfaction of conditions precedent as stipulated in the Agreement and receipt of such permissions and consents, that may be required, including the consent of the shareholders and lenders of the Company.
The amount of gross revenue of the Steel Business and percentage thereof, in relation to the Company as a whole on a standalone basis for the financial year ended 31st March, 2018 was Rs. 3441 crores (approximately 70%).
The amount of consideration for the transfer shall be in the range of Rs 4300 crore to Rs 4700 crore, subject to adjustments as per the signed agreement.
The expected date of completion of sale / disposal is 6-9 months.
Shares of USHA MARTIN LTD. was last trading in BSE at Rs.31.4 as compared to the previous close of Rs. 32.45. The total number of shares traded during the day was 876469 in over 2573 trades.
The stock hit an intraday high of Rs. 34.35 and intraday low of 28.1. The net turnover during the day was Rs. 27807145.