Slump Sale

Core business divestedScheme filed with the NCLTStrategic Transactions View source PDF Explain this filing

MUKANDLTD · price

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▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.

Price reactionminutes from the announcement price · days from the prior close

-9.6%Reaction day

₹120.25

prior close

₹118.55

announcement price

After-mkt

timing

Nifty Microcap 250market · in no size index; the smallest one is used+1.2%-10.8% vs market

Iron & Steel Products peers, median of 91sector+1.0%-10.6% vs sector

On the reaction day the stock moved 10.8 pts less than Nifty Microcap 250 and 10.6 pts less than its Iron & Steel Products peers, over the same two closes: a difference in percentage points, not a measure of what the filing did.

Minutes after the announcementfrom the announcement price · no benchmark

Stock

-2.2

10m

-2.6

15m

-3.5

30m

-3.9

Sessions after the filingfrom the prior close

StockMarketvs marketSectorvs sector

Reaction day

-9.6+1.2-10.8+1.0-10.6

Next day

-7.9+0.1-8.0+0.0-7.9

-7.1+0.9-8.0+0.1-7.2

-4.9+0.8-5.6-0.1-4.8

-3.2+1.4-4.7+0.3-3.6

+0.9+2.0-1.1-0.2+1.1

+0.6+2.3-1.6-0.6+1.2

15d

+3.1+5.2-2.0+1.5+1.6

-6.0+1.6-7.6+1.6-7.6

+13.5+7.7+5.8+5.3+8.2

+14.3+4.0+10.4-1.2+15.5

UpDownMarket · Nifty Microcap 250Sector · Iron & Steel Products peers, median of 91Pending

Minute windows have no benchmark: there is no intraday index history to compare against.

AI summary

Mukand Limited's board, meeting on May 16, 2025, approved audited standalone and consolidated results for Q4 and FY25 (auditor gave an unmodified opinion). The board recommended a dividend of Rs. 2 per equity share (20%) and 8% dividend on cumulative redeemable preference shares for FY25, subject to shareholder approval. Key corporate action: the company approved transfer of part of its Industrial Machinery Division (EOT Cranes, materials handling and process plant equipment) to Mukand Heavy Engineering Limited (MHEL), a wholly owned subsidiary, via slump sale on a going-concern basis, in exchange for equity shares of MHEL. The transferred business contributed Rs. 226.16 crore (4.59%) of total income and Rs. 42.93 crore (4.47%) of net worth in FY25. The transaction is a related-party deal at arm's length, with no change in Mukand's shareholding pattern, and is expected to close by September 30, 2025. Additionally, the NCLT had approved the demerger of the stainless steel cold-finished bars and wires business from wholly owned subsidiary MSMPL on April 29, 2025, leading to restatement of prior-year figures. For FY25, Mukand reported total income of Rs. 4,929.74 crore and profit after tax of Rs. 86.95 crore (EPS Rs. 6.02) on a restated basis.

Likely market impact

Shareholders will receive a Rs. 2 per share dividend if approved at the AGM, providing a modest yield. The slump sale of the small Industrial Machinery business to a wholly owned subsidiary is essentially an internal restructuring with no change in the listed entity's shareholding pattern, aimed at sharper focus on the core steel business; it should not materially affect the stock price but signals portfolio simplification. FY25 profit after tax declined from Rs. 104.06 crore (restated) to Rs. 86.95 crore, indicating earnings pressure worth monitoring.