Mukand at 5% UC

Mukand yesterday night had quite a few good news to share.

1: To ‘significantly’ reduce its interest cost, the company has signed a term loan agreement with a leading Bank and its positive impact will be seen from the quarter Oct -Dec’20 onwards. T

2: The Company has signed an MOU for the transfer of the Company’s surplus 55 acre lease hold land in Dighe, Thane and another for its lease hold land in Sinnar, Maharashtra – both expected to be completed before end of FY21.

3: The company is completing regulatory requirements for the shareholder approved sale of the company’s shares in the JV -Mukand Sumi Special Steel - to the promoter entity Jamnalal Sons. The first tranche of Rs.713 crore, out of the total consideration of approx. Rs.1,213 crore, from the sale of the aforesaid shares to be received in quarter 3 of this financial year, further enhancing the financials of the Company.

4: Looking ahead, the company said that it expects a sustained higher demand for its alloy steel products to not only continue strongly in this financial year but also for the next year.

The market is super-thrilled with this news and that stock price reacted accordingly – hitting the 5% UC of the day at Rs.47.95. Its 52-week high stands at Rs.56.30.