Jamnalal Sons Pvt Ltd, one of the Bajaj group companies, has acquired 30 per cent stake in Mukand Sumi Special Steel from its group company Mukand for ₹714 crore.
Even after completion of the deal, Mukand will retain ownership of its alloy steel manufacturing joint venture in Ginigera, Karnataka and income derived from sale of its alloy steel products, said the company in a statement on Friday.
The approval from the Competition Commission of India for the proposed transaction has been received on December 30, it added.
The disinvestment follows Mukand plans to sell up to 51 per cent of its equity holding in joint venture company Mukand Sumi Special Steel to reduce its debt.
The board of directors of Mukand at its meeting held on August 31 decided to sell up to 2,12,08,729 equity shares in Mukand Sumi Special Steel over 12 months.
Following this, Mukand on Friday completed the first tranche of the proposed transaction and sold 1.24 crore equity shares of MSSSL, constituting 30 per cent of the issued paid up equity share capital of MSSSL to Jamnalal Sons for ₹713 crore.