Monnet Ispat surges after plans to sell controlling stake in subsidiary to JSW Energy

Monnet Ispat & Energy was locked at 20% upper circuit at Rs 42.75 at 10:30 IST on BSE after the company signed MOU with JSW Energy for entering into discussion to sell majority and controlling stake of its subsidiary, Monnet Power.

The company made announcement after trading hours yesterday, 9 July 2015.

Shares of JSW Energy fell 0.45% to Rs 98.65.

Meanwhile, the S&P BSE Sensex was up 65.60 points or 0.24% at 27,639.26.

On BSE, so far 69,444 shares were traded in the counter as against average daily volume of 84,536 shares in the past one quarter.

The small-cap stock was locked at a high of Rs 42.75. The stock hit a low of Rs 40.10 so far during the day. The stock hit a 52-week high of Rs 144.25 on 22 July 2014. The stock hit a 52-week low of Rs 27.30 on 3 June 2015.

Monnet Ispat & Energy and JSW Energy separately announced that they have signed non-binding Memorandum of Understanding (MOU) for entering into discussion to sell majority and controlling stake of Monnet Ispat's subsidiary, Monnet Power Company to JSW Energy. Monnet Power Company is engaged in the business of developing 1050 megawatts (MW) (2 x 525) coal fired thermal power plant located at Malibrahmani, Angul Orissa.

Monnet Ispat & Energy reported net loss of Rs 492.32 crore in Q4 March 2015 compared with net loss of Rs 92.97 crore in Q4 March 2014. Total income rose 8.6% to Rs 719.60 crore in Q4 March 2015 over Q4 March 2014.

Monnet Ispat & Energy's business portfolio encompasses manufacturing and marketing of sponge iron, steel and ferro alloys. MIEL is also engaged in mining of minerals like coal & iron ore, besides generation of power for captive consumption.

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