Kirloskar Brothers Takes over management of The Kolhapur Steel Ltd

Kirloskar Brothers Ltd has announced that the Company has taken over the management of The Kolhapur Steel Ltd (TKSL). This is by way of induction of majority directors by the Company on the Board of The Kolhapur Steel Ltd. This is in accordance with the order dated September 10, 2007 passed by Honourable Board of Industrial and Financial Reconstruction (BIFR) which was taken on record by the Board of Directors of The Kolhapur Steel Ltd at its Board meeting held on September 19, 2007. As directed by BIFR, the Company shall deposit an amount of Rs 14.86 crores in a No Lien Account, which is earmarked for payment of dues of TKSL to Shree Suvarna Sahakari Bank Ltd and a Creditor after final approval of BIFR to the modified rehabilitation proposal.

The Kolhapur Steel Ltd (TKSL), incorporated in the year 1965, is engaged in manufacturing of alloy steel castings catering to sugar, cement, steel, pumps / valves, marine, earth moving and other general engineering industries sectors. The capacity of TKSL steel castings can be used by the Company to meet its captive demand due to increase in production as well as to cater to other customers. The share purchase agreement will be executed upon the approval of BIFR.

The stock was trading at Rs.500, up by Rs.9.45 or 1.93%. The stock hit an intraday high of Rs.502 and low of Rs.470.

The total traded quantity was 11456 compared to 2 week average of 11445.

Source : Equity Bulls

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