Monnet Ispat up for 15th straight session; stock zooms over 100%

The stock locked in upper circuit for the 15th straight session, up 5% at Rs 45.85, surging 105% from Rs 22.30 since September 14, 2018 on the BSE.

Shares of Monnet Ispat & Energy have locked in upper circuit for the 15th straight session, up 5% at Rs 45.85 on the BSE.

Since September 14, 2018, the market price of Monnet Ispat & Energy has zoomed 105% from Rs 22.30, as the stock listed on the BSE after the Insolvency & Bankruptcy Code (IBC) proceedings. The shares were trading under the compulsory delivery segment — T Group. In comparison, the S&P BSE Sensex was down 10% during the same period.

Till 12:40 pm; a combined 74,003 equity shares changed hands and there were pending buy orders for 125,292 shares on the BSE and NSE.

The resolution plan involving reduction of capital of the Company was approved by Hon’ble National Company Law Tribunal (NCLT), Mumbai bench vide order dated July 24, 2018, under provisions of Insolvency & Bankruptcy Code (IBC), 2016.

As per resolution plan, the paid-up and subscribed equity share capital of the company held by the non-promoter shareholders was reduced on the proportionate basis to 33.06% of its original value without any payout, i.e., one equity share of the company of Rs 10 each was reduced to Rs 3.3 each. Then, the equity shares with reduced face value of Rs 3.3 were consolidated into equity shares of Rs 10 each while the then promoters’ 100% equity share capital was extinguished.

A non-promoter shareholder holding 100 equity shares of the firm was entitled to receive 33 equity shares of the company upon reduction and consolidation of the equity share capital of the company, as on the record date of August 28, the company said in a regulatory filing.

JSW Steel and its promoters have acquired around 88% stake in the Monnet Ispat and Energy following completion of the insolvency resolution proceedings. The Aion-JSW consortium was the sole bidder for the 1.5-million-tonne asset in Chhattisgarh.