Kalyani Steels zooms 11% after becoming successful bidder of Kamineni Steel

Shares of Kalyani Steels Limited surged over 11 percent to Rs 579 in early trade on January 11 after the company announced it has emerged as the successful bidder for the acquisition of assets belonging to Kamineni Steel & Power India Private Ltd.

“The company has been declared as a successful bidder for the acquisition of assets of Kamineni Steel & Power India Private Limited under the invitation for the sale of Assets through e-auction platform, under Insolvency and Bankruptcy Code, 2016,” it said in a regulatory filing on January 10.

At 9:25 am, the counter was trading at Rs 570, up 9.5 percent from the previous close on the NSE. In the last one year, the stock has gained 56 percent on the exchanges.

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The acquisition, executed through an e-auction platform under the Insolvency and Bankruptcy Code, 2016, represents a strategic step for Kalyani Steels as it broadens its presence in the steel manufacturing sector.

The assets slated for acquisition encompass land, buildings, and plant machinery located in Yellareddigudem and Cheruvugattu villages in Nalgonda district, Telangana.

The total land area is 143.82 acres, hosting a 350,000 MTPA steel billet plant and associated facilities. Kalyani will make a cash payment of Rs 450 crore for the acquisition, with an initial deposit of Rs 23 crore already submitted as earnest money.

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 percent per annum until the date of payment.

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