Ispat Industries soars 5% on stake sale deal

Ispat Industries today jumped nearly 5 per cent on BSE, a day after the domestic steel maker entered into a stake sale deal with UK-based trading company Stemcor.

Shares of the company gained 4.9 per cent to hit a early high of Rs 21.30 on the Bombay Stock Exchange.

The scrip saw a similar movement on the National Stock Exchange, where it surged 4.91 per cent to Rs 21.35 in the morning session.

Yesterday, Ispat Industries had entered into a pact with Stemcor to sell 10 per cent stake through preferential allotment to the latter, a  move which may help cut its debt.

The amount raised through such share allotment was not immediately known.

The company has an annual production capacity 3.3 million tonnes in Maharashtra while Stemcor trades about 15 million tonnes of steel and steel making raw materials per annum. It also owns
investments in manufacturing projects in steel related raw materials.

The 30-share Sensex, which shed 85 points yesterday, was trading 182 points higher at 1120 hrs.