Usha Martin jumped up almost 12% to Rs.33, a new high and continues to remain firmly in the green, with volumes going up almost 1.5 times.

The stock price has spiked up on news that it’s Board has decided to initiate the sale of its steel business, with the main aim being to delevarge its debt.

Its debt stands at Rs.3700 crore.

The news on the Street is that it is likely to receive bids from the likes of Tata Steel and JSW Steel who have been rumoured to have made an offer of Rs.6000 crore and Rs.5500 crore respectively.

Usha Martin facility has a capacity of 1 million tonnes and the specialty steel business consists of a fully-integrated steel plant with captive iron ore and coal mines and produces wire rods and bars. The plant is located in Jamshedpur which makes all the more logical for Tata Steel for acquire it.