Maharashtra Seamless jumps 4%

Maharashtra Seamless, a DP Jindal group company engaged in the manufacture of steel pipes and tubes, went up to Rs.509 today; a one-month high.

The stock went up, reacting to the news that it has acquired United Seamless Tubulaar Pvt Ltd (USTPL) under the corporate insolvency resolution process (CIRP) as approved by Hyderabad Bench of National Company Law Tribunal (NCLT).

The deal is worth Rs.477 crore.

USTPL is a JV between the Kamineni Group and UMW Group of Malaysia, is involved manufacturing of seamless pipes and tubes. This bid of Maharashtra Seamless was backed by 87% lenders.  

USTPL went under insolvency after it defaulted on repayments of Rs 4,000 crore of loans to the companies.