Announcement under Regulation 30, Material Event Disclosure - Sale of Investments to Related Party
Awaiting price reaction for this filing.
Mideast Integrated Steels Ltd (MISL) has approved the sale of its entire 18.78% stake (2,50,000 equity shares) in Mesco Steels Limited to Mesco Mining Limited. The buyer is an unlisted entity belonging to the same Mesco Group, making this a related party transaction, which will be executed at arm's length based on an independent valuation. Total cash consideration is ₹1.20 crore, expected to be completed within 30 days. The proceeds will be used to optimize liquid cash flows and support MISL's core steel operations. Notably, Mesco Steels Limited had nil turnover in the last audited financial year (FY2024).
This is a small-value monetization (₹1.20 crore) of a non-core, inactive investment with no turnover, so the financial impact on MISL is minimal but signals internal restructuring within the Mesco Group. Minority shareholders should note the related-party nature but can take comfort from the independent valuation and arm's length pricing.