“The board of directors of the company decided to explore the sale of its steel business in order to achieve the objective of deleveraging the company,” Usha Martin said in a regulatory filing on Monday after the market hours.
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, it added.
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.
In past one week, the stock rallied 65% from Rs 19.95, after the media report suggested that Tata Steel leads race to buy Usha Martin. On comparison, the S&P BSE Sensex was up 1.8% during the week. But, the company denied the said report.
At 09:52 am; shares of Usha Martin was trading 6% higher at Rs 31.30, as compared to 0.19% rise in the benchmark index. The counter has seen huge trading volumes with a combined 3.29 million shares changed hands in first 40 minutes of trade on the NSE and BSE.