Bajaj Family to Buy Residual Stake in Mukand Ltd
Economic Times reported that the Bajaj family has decided to buy out Mr Suketu and Mr Rajesh Shah’s 16.5% residual stake from steel venture Mukand Ltd, ending months of negotiations. The Shah family will be cashing out of the business via block deals in the stock market, as part of a major restructuring exercise that has been ongoing for months to revive the operations. At current market prices, the Bajaj family would have to shell out INR 353 crore for the transaction.
There will be no tender offer for the acquisition of shares since it is a transfer between promoters. The transaction is expected to take place as early as Monday.
Incorporated in the year 1937, Mukand Iron & Steel Works Limited, was acquired by the present promoter families, Shri Jamanlal Bajaj and Shri Jeevan Lal Shah, on the behest of Mahatma Gandhi in the year 1939. The Company then operated re-rolling mills and a foundry in Lahore and at Reay Road, Bombay respectively. The Company was rechristened Mukand Ltd.in the year 1989 and had grown to become a multi division, multi product conglomerate. Mukand Ltd is a multi division, multi product conglomerate involved in the manufacture of specialty steel long products and heavy machinery. With manufacturing facilities in Thane, Maharashtra and Hospet, Karnataka, Mukand produces over 400 grades of specially engineered steel to suit stringent customer requirements in sizes ranging from 5 mm to 160mm in the form of bars, bright bars, wire rods and wires.