Monnet Ispat shares zoom 20%; hit upper circuit limit

Shares of Monnet Ispat & Energy today advanced by 20 per cent as JSW Energy entered into a non-binding pact with the company for a possible acquisition of its power arm.
The stock soared 19.92 per cent to Rs 42.75 -- its highest trading permissible limit for the day -- at BSE.
On the NSE, shares of Monnet climbed 20 per cent to touch its upper circuit limit of Rs 42.90.
"We have entered into a non-binding agreement with Monnet Ispat for due diligence for acquiring their power arm MPCL. Due diligence will take at least 40 to 45 days and based on the outcome the decision will be taken," Joint MD & CEO, JSW Energy, Sanjay Sagar told PTI.

On being asked about possible valuation of the company, Sagar said it will be done only after due diligence.
Meanwhile, Monnet Ispat had yesterday informed BSE that the company has signed non-binding memorandum of understanding (MoU) with JSW Energy for entering into discussion to sell majority and controlling stake of its subsidiary, Monnet Power Company, which is engaged in the business of developing 1,050 MW coal fired thermal power plant located in Odisha.