Mukand, a speciality steel manufacturer, has received the first tranche of ₹713 crore from sale of shares in the joint venture Mukand Sumi Special Steel to the promoter entity Jamnalal Sons.

In a letter addressed to shareholders, Niraj Bajaj, Chairman and Managing Director, Mukand said the company is in the process of completing the regulatory requirements for the shareholder approved for the share sale.

“We expect the first tranche of about ₹713 crore, out of the total consideration of about ₹1,213 crore from the share sale to be received in December quarter of this financial year, further enhancing the financials of the company,” he said.

The company has also signed a Memorandum of Understanding for the transfer of the surplus 55 acre lease hold land in Dighe, Thane. Another for its lease hold land in Sinnar, Maharashtra. Both these transactions are expected to completed before the end of this financial year.

In an earlier communication, the company said it is on the verge of finalising a significant reduction in interest costs. This term loan agreement with a leading bank has been signed and its positive impact will be seen from December quarter onwards.

There has been a strong demand for the company’s alloy steel products that is linked to the automobile market and steel production has already achieved near full capacity. The company expects sustained growth in the automobile market, especially for two wheelers and passenger cars, said Bajaj.

It has already has already doubled revenue in the September quarter compared to June quarter.

Mukand is the market leader in the manufacture of speciality alloy steel long products and supplies to leading automobile and auto component manufacturers.

“We estimate the sustained higher demand for the company’s alloy steel products to not only continue strongly in this financial year but also for the next year,” he added.

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