Sunflag Iron and Steel Co. Ltd will sell 10% stake to Japanese firm Daido Steel Co. Ltd, to raise Rs.56 crore by issuing preferential equity shares, the company said in a filing to BSE on Thursday.
Sunflag is a specialty steel manufacturer and caters to industries such as automobiles, railways, defence, engineering and agriculture.
Sunflag will issue 1.8 million shares valued at Rs.31 (face value of Rs.10 and a premium of Rs.21) to the Japanese firm, the filing said.
The funds from the sale of shares will be used for strengthening the equity base of the company to help in raising future debt and meet capital expenditure, the company said in the filing.
Daido Steel is an alloy steel manufacturer and caters to the auto components industry in Japan.
The announcement comes after Prime Minister Narendra Modi’s five-day visit to Japan. The Japanese government has promised to give $35 billion to India over the next five years for various developmental projects. The two countries signed five pacts covering defence exchanges, cooperation in clean energy, roads and highways and healthcare.
At 1.21pm, shares of Sunflag Iron and Steel were trading at Rs.31.05 on BSE, up 0.5% from the previous close, while the exchange’s benchmark Sensex index fell 0.2% to 27,007.12 points.
Source: livemint.com
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