Maharashtra Seamless jumps 4% on acquisition of USTPL

Maharashtra Seamless, a  DP Jindal Group company, surged nearly 4 per cent in early deals on Wednesday after it announced acquisition of United Seamless Tubulaar in a deal worth Rs 477 crore.

The stock rallied up today with an opening price of Rs. 444.80 against the previous close of 432.90 in BSE. The share price hit an intraday high of 449 on BSE and 448.9 on NSE.  

On Tuesday, the company said that it has acquired USTPL under the corporate insolvency resolution process (CIRP) as approved by Hyderabad Bench of National Company Law Tribunal (NCLT).

At 11:10 hours, the stock was quoting at Rs 438.80, up 10.90 point, or 2.52 per cent on the BSE. Earlier during the day's trade, stock touched an intra-day high of Rs 449 after opening at Rs 444.80, against previous closing price of Rs 432.90.

On the National Stock Exchange, the share price surged 3.9% to the intraday high of Rs.448.90, after the opening at Rs.442.80, against the previous close of Rs. 431.85.

United Seamless Tubulaar Private, a joint venture between the Kamineni Group and UMW Group of Malaysia, is involved manufacturing of seamless pipes and tubes. The bid of Maharashtra Seamless Ltd, of Rs 477 crore was backed by majority lenders (87 per cent), who had approved the bid.

Incorporated on September 8, 1997, USTPL went under insolvency after it defaulted on repayments of Rs 4,000 crore of loans to the companies.