Speciality steel maker Usha Martin Ltd is planning to sell its wire and wire rope business.
“The board of directors of the company at its meeting held today (Friday) has appointed a consultant to evaluate the possibility of sale of the wire and wire rope business,” it said in a regulatory filing to BSE.
“Any actual sale of the business will only be undertaken after due consideration and by following due process of law and with appropriate regulatory, shareholders’ and lenders’ consent,” the company said.
A committee of independent directors will oversee the process and recommend suitable offers to the board for consideration.
Usha Martin is a leading manufacturer of wire rope and speciality steel in the country. The company makes wire rope in India, the UK, Thailand, Dubai and Bangkok.
The Kolkata-based firm had reported a consolidated net loss of Rs.109.2 crore in the quarter ended December 2016, compared with a loss of Rs.88.8 crore during the corresponding period last year. Net sales was Rs.931.5 crore, compared with Rs.1,022.1 crore in the same period a year ago.
According to BSE filing, value added products suffered due to sluggish overseas market. The Ranchi factory of Usha Martin is one of the world’s largest wire rope manufacturing facilities, spread across an area of more than 100 acres. The wire ropes produced here are used across industries like oil, mining, crane, elevator, aerial ropeway, and bridges.
Pengg Usha, a joint venture between Usha Martin and Joh Pengg AG of Austria, produces oil-tempered wire, required by the automotive industry.
Soon after the announcement, Usha Martin stock rose about 9% to trade at Rs.21.25 on the BSE.
Like this report? Sign up for our daily newsletter to get our top reports.