Mukand surges by 3 per cent as Japanese firm buys stake in JV

The share price of stainless steel manufacturer Mukand charted up by over 3 per cent in the intraday trade on Wednesday as a Japanese firm Sumitomo Corporation purchased 49 per cent stake in the joint venture of the company for an amount of Rs. 1181 crore. 
  
Sumitomo Corporation bought 49 per cent stakes in Mukand Sumi Special Steel, with Mukand retaining 51 per cent equity in the joint venture. The freshly formed JV recently also announced that it will be investing about Rs. 600 crore for setting up a steel rolling facility at Hospet in Karnataka. The proposed construction and commissioning of the new steel rolling unit is likely to be set up by 2020. 
  
Mukand Sumi Special Steel will engage in the business of rolling, finishing and marketing of alloy steel wire rods and bars produced from blooms and billets acquired from Mukand ’ s own facility at Hospet in Karnataka.                     
  
In Wednesday ’ s trade, Mukand recorded an intraday high of Rs. 72 per share and an intraday low of Rs. 70.70 per share on BSE, respectively. The stock had hit its 52-week high of Rs. 109 per share on October 24, 2017 and its 52-week low of Rs. 58.15 per share on March 28, 2018 on BSE. 
  
At 1158 hours IST, the stock was trading at Rs. 71.50 per share, up by 2.07 per cent on BSE on Wednesday. Meanwhile, S&P BSE Sensex was trading at 34,628.44 level, down by 0.07 per cent and NSE Nifty50 was trading at 10,512.65 level, down by 0.23 per cent.