Kalyani Steels hits 52-week high after company wins ₹450 crore bid for Kamineni Steel assets in Telangana

The acquisition, conducted through an e-auction platform under the Insolvency and Bankruptcy Code, 2016, marks a strategic move for Kalyani Steels as it expands its footprint in the steel manufacturing sector.

The assets to be acquired include land, buildings, and plant machinery situated in Yellareddigudem and Cheruvugattu villages in Nalgonda district in Telangana.

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The total land measures 143.825 acres and houses a 350,000 MTPA steel billet plant along with associated vehicles. The e-auction, held on January 5, 2024, concluded with Kalyani Steels receiving the letter of intent on Wewdnesday, January 10, 2024.

The acquisition, subject to the outcome of an appeal filed with the National Company Law Appellate Tribunal (NCLAT), Chennai Bench, by the previous successful bidder, is targeted to be completed by May 7, 2024.

Kalyani Steels is set to pay a cash consideration of ₹450 crore for the acquisition, with an initial payment of ₹23 crore already made as an earnest money deposit.

The remaining balance is due on or before April 7, 2024, with no interest charged if paid by February 7, 2024. Subsequently, interest will be applied at the rate of 12% per annum until the date of payment.

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Shares of Kalyani Steels Ltd were trading 11.9% higher at ₹581.70 at 10.30 am on Thursday, January 11.