Special steel and wire rope maker Usha Martin Ltd surged as much as 15 per cent to Rs 36, the stock's highest in a fortnight, as the company has agreed to sell steel business to Tata Steel Ltd.
Tata Steel is set to acquire the integrated one million tonne steel-making facility of Usha Martin for a cash consideration of around Rs 4,300-4,700 crore. The process of acquisition is likely to be complete in the next six-to-nine months.
More than 5 million shares traded vs 30-day average volume of around 2.7 million. Tata Steel shares were down 0.57 per cent. Usha Martin has a price-to-book ratio of 1.31 vs sector average of 2. Usha Martin had gained 26.2 per cent this year as of last close, while Tata Steel shed 5.5 per cent in the same period.