Shares of ISMT Ltd. rose as much as 4.4 percent in morning trade on Monday after the company announced its plans to sell its 40 MW captive power plant to Omsairam Steels and Alloys for Rs 65.71 crore.
The company entered into a Business Transfer Agreement on December 9 for the sale of the 40 MW captive power plant on a slump sale basis.
The deal is expected to be completed by February 2023.
The sale of the captive power plant will strengthen the company's financial position as the plant has been non-operational since April 2014. In addition, it will also help reduce the annual operating cost that is incurred by the company to keep the CPP in working condition.
ISMT is engaged in the manufacturing of steel, alloys, and metal tubes, while Omsairam Steels and Alloys is involved in the manufacturing of TMT Bars and Billets.
ISMT Ltd. registered a turnover of Rs 2,152.54 crore and its net worth stood at Rs 1,415.78 crore for the previous financial year. Omsairam Steels and Alloys clocked a turnover of Rs 1,318.26 crore in the previous financial year while its net worth was Rs 226.79 crore.
Shares of ISMT are trading at Rs 54.40, up 1.49 percent.
