Slump Sale
MUKANDLTD · price
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Awaiting price reaction for this filing.
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.
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.