Electrotherm has opened 4% higher at Rs 158 after the company sold its iron pipe business and 100% stake in a subsidiary of the company to France's Saint Gobain for Rs 950 crore.
"Electrotherm had executed binding agreement pursuant to which Saint-Gobain Pour La Construction SAS will acquire Electrotherm's Ductile iron pipes business for Rs 950 plus the value of working capital at closing," Electrotherm Ltd said in a filing to the BSE.
The transaction will enable Electrotherm to focus on its core businesses of engineering and steel and also to reduce debt. KPMG Corporate Finance was the exclusive financial advisor to the company.
A combined 91,100 shares have changed hands in the counter on the BSE and NSE in early trades.