Kalyani Steels Hits 52-Week High on ₹450-Crore Kamineni Steel Assets Win

Kalyani Steels share price surged 16% to reach ₹605.55 in early trading on 11 January 2024. The boost followed the company's successful bid for acquiring assets from Kamineni Steel & Power India Private Ltd, as announced in a regulatory filing on 10 January 2024.

Kalyani Steels emerged as the successful bidder through an e-auction platform under the Insolvency and Bankruptcy Code, 2016. The acquired assets, located in Yellareddigudem and Cheruvugattu villages in Nalgonda district, Telangana, include land, buildings, and a 350,000 MTPA steel billet plant. The total land area spans 143.82 acres.

Financial Aspects

For this acquisition, Kalyani Steels will make a cash payment of ₹450 crore. An initial deposit of ₹23 crore has already been submitted as earnest money, and the remaining balance is expected on or before 7 April 2024. No interest will be charged if paid by 7 February 2024; afterward, interest will apply at a rate of 12% per annum until the payment date.

This move represents a strategic step for Kalyani Steels, expanding its footprint in the steel manufacturing sector. The company has been consistently modernizing its infrastructure and technology, aligning itself with globally advanced steel producers.

At 1.09 pm, Kalyani Steels' stock was trading at ₹605, up 16.46% from the previous close on the NSE. Over the past year, the stock has demonstrated impressive growth, gaining 56% on the exchanges.

About Company

Kalyani Steels Ltd., a division of the Kalyani Group worth over $3.0 billion, was founded in 1973. The company specializes in producing premium carbon and alloy steels through forging and engineering, utilizing the Blast Furnace method of production.

Kalyani Steels' stock price rose by 43.22% in the past year, underperforming its sector by 21.01%. The company's commitment to staying at the forefront of the industry is evident in its continuous modernization efforts.

Final Words

Kalyani Steels' successful bid for the assets of Kamineni Steel & Power India Private Ltd marks a milestone in its growth journey. The acquisition aligns with the company's strategy to strengthen its presence in the steel manufacturing sector, showcasing a commitment to innovation and modernization. As the company continues to expand its operations, investors and stakeholders eagerly anticipate the positive impact on its overall performance.