Kalyani Steels’ share hit an upper circuit of 20% on Thursday’s early trade session after the iron and steel forging company announced being the successful bidder to acquire the assets of Kamineni Steel and Power India. 

Shares of Kalyani Steels hit an intraday high of Rs 623.70, up 20% from its last closing price on the National Stock Exchange (NSE). The stock closed 14.86% higher than its previous closing price at Rs 597.00. 

In a regulatory filing dated January 10, Kalyani Steels said that it has been declared as a successful bidder for the acquisition of assets of Kamineni Steel & Power India for a cash consideration of Rs 450 crore.

The company added that it has already paid an initial money deposit of Rs 23 crore to participate in an e-auction, which was scheduled for Friday, January 5, for the sale of the assets. The remaining balance is due on or before April 7, 2024. Interest at the rate of 12% per annum until the date of payment if not paid by February 7, 2024. 

The assets of Kamineni Steel & Power India being acquired are land, buildings, and plant machinery and are located in Yellareddigudem and Cheruvugattu villages in Nalgonda district, Telangana. The assets have to be acquired by May 7, 2024.