Usha Martin spurts on plan to sell steel business

Usha Martin rose 4.75% to Rs 30.90 at 9:46 IST on BSE after the company said it is planning sale of steel business to deleverage balance sheet.

The announcement was made after market hours yesterday, 11 June 2018.

Meanwhile, the S&P BSE Sensex was up 51.53 points, or 0.15% to 35,535.

On the BSE, 4.72 lakh shares were traded in the counter so far compared with average daily volumes of 4.39 lakh shares in the past two weeks. The stock had hit a high of Rs 33 so far during the day, which is also a 52-week high for the counter. The stock had hit a low of Rs 30.80 so far during the day. The stock hit a 52-week low of Rs 17.70 on 27 June 2017.

Usha Martin announced that its board has decided to explore the sale of its steel business in order to achieve the objective of deleveraging the company. The board reconstituted the committee of independent directors of the company to appoint investment banks, consultants and advisors to help evaluate proposals and oversee the process for sale of steel business of the company.

Any actual sale of the business will only be undertaken by the company after due consideration and by following due process of law by obtaining appropriate approvals from the board, regulators, shareholders and lenders, as applicable, the company said.

On a consolidated basis, Usha Martin reported net profit of Rs 12.58 crore in Q4 March 2018 as against net loss of Rs 147.89 crore in Q4 March 2017. Net sales rose 30.02% to Rs 1319.83 crore in Q4 March 2018 over Q4 March 2017.

Usha Martin is amongst the largest wire rope manufacturer in the world and a leading speciality steel producer in India.

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