“The amount shall be utilised for debt repayment of the company,” the company said in a letter addressed to its shareholders.
Mukand in December 2020 entered into an agreement for the transfer of this 55-acre leasehold land and the accompanying structures at the Trans Thane Creek Industrial Area (TTC Industrial Area), Dighe and Navi Mumbai.
The company has also brought down its overall debt by Rs 975 crore during FY21. The company’s total debt as of FY20 is around Rs 2,536.19 crore.
Mukand said that the company has sold its 51% stake in the joint venture, Mukand Sumi Special Steel Ltd (MSSSL), to M/s Jamnalal Sons Private Ltd and has received Rs 713.61crore as the first tranche on December 31, 2020.
In May 2018, the company formed a joint venture (JV) with Sumitomo Corporation, Japan, for the business of rolling, finishing and marketing of wire rods, bars, bright bars and wires made from blooms and billets procured exclusively from Mukand’s Ginigera, (Karnataka) plant.
“The second and final tranche of sale of shares approx ₹ 500 crore will be completed in April, Q1 of FY 2021-22,” the company’s letter said.
Mukand will continue to retain ownership of its alloy steel manufacturing assets in Ginigera, Karnataka, and the income derived from the sale of its alloy steel products, to the joint venture, MSSSL.