Mahindra Ugine Steel soars on forming JV with Sanyo Steel

Mahindra Ugine Steel Company (MUSCO) has soared over 10% at Rs 53 on back of heavy volumes, after the company said it has formed a new joint venture (JV) company, Mahindra Sanyo Special Steel Private Ltd, following the financial closure of its joint venture.

Japanese specialty steel and trading majors Sanyo and Mitsui have picked up 29% and 20% stake each in a three-way joint venture with Mahindra group company, MUSCO. Sanyo has invested Rs 129 crore and Mitsui Rs 89 crore in the JV while MUSCO will retain 51% stake.

“As part of the arrangement, Sanyo will offer technical support and Mitsui marketing assistance to the speciality steel joint venture, which will be called Mahindra Sanyo Special Steel Pvt Ltd,” the company said in a filing.

The stock opened at Rs 54 and hit a high of Rs 58.90 on the National Stock Exchange. A combined 155,303 shares have already changed hands on the counter in morning deals, against an average sub 50,000 shares that were traded daily in past two week on both the exchanges.