Prakash Steelage transfers seamless stainless steel tubes, pipes business to Tubacex Prakash India

28 Jul 2015 Evaluate

Prakash Steelage has transferred its seamless stainless steel tubes and pipes business to Tubacex Prakash India (JV Company) in accordance with the provisions of the Business Transfer Agreement dated July 25, 2015 entered into between the company and the JV Company. This step has been taken pursuant to the Joint Venture Agreement (JVA) executed between the Company and Tubacex S.A. Spain, dated February 13, 2015.

Pursuant to the transfer of business as per the JVA, the company has received a consideration of Rs 209.16 crore, a major part of which is being utilized to repay the bank debts. Consequently, the JV Company has issued equity shares to Tubacex S.A and the company. Post closing of the JVA, the company now holds 32.47% of the equity shares and the balance shareholding of 67.53% is held by Tubacex S.A in the JV Company. Consequently, the JV Company is no longer a subsidiary of the company.

Further, the company will continue to own and operate all its other businesses, including the manufacturing of stainless steel welded tubes and pipes and trading business.


Prakash Steelage Share Price

8.05 -0.32 (-3.82%)
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Company Name CMP
Tata Steel 141.70
JSW Steel 936.60
SAIL 121.50
Jindal Stainless 725.85
Jindal Saw 302.05
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