Steel Exchange gets court nod for Simhadri Power merger

Effective date of merger is April 1, 2013; Steel Exchange net worth to double to Rs 649 cr

Steel Exchange India Limited (SEIL), a Hyderabad-based company engaged in the manufacture of iron and steel products, has received the approval from High Court of Judicature at Hyderabad for Telangana and Andhra Pradesh, for the amalgamation of Vizag-based Simhadri Power Limited (SPL) with the company. The effective date of the merger is April 1, 2013.

SPL has a coal-based power plant, generating 60 Mw of which 34 Mw is used for captive purpose and the remaining is sold to the AP Grid. The power plant utilises waste heat from the kilns of the sponge iron unit of SEIL, generating about 16-Mw of power from fuel gases. Besides, it utilises the coal fines generated by SEIL.

 

"This amalgamation will result in the overall increase of our net worth. The asset base of the company will also increase substantially from Rs 324 crore to Rs 649 crore," B Satish Kumar, managing director of SEIL, said in a press release on Monday.

SEIL's scrip ended the trade at Rs 49.55 on the BSE on Monday, down 3.69 per cent, over the previous close of Rs 51.45 a share.