Monnet Ispat today soared over 18 per cent to touch an all-year high on the BSE, a day after it sold a 12.5 per cent stake in its arm, Monnet Power Company (MPCL), to US-based Blackstone Group for Rs 275 crore.
Shares of the steel-maker surged 18.54 per cent to touch a 52-week high of Rs 476.50 on the Bombay Stock Exchange.
The scrip remained firm in the weak broader market and settled at Rs 468.60, up 16.58 per cent from the previous close.
“The deal is of great value for Monnet Ispat. Specially when the sentiment in the market is negative, the deal has given a fair valuation to the company. However, the stock has seen a good run-up in the last few days, so it may see some consolidation,” SMC Global Vice President Rajesh Jain said.
Meanwhile, the 30-share benchmark Sensex ended the day 0.28 per cent lower at 17,460.95 points.
The deal with Blackstone Group, an alternative asset management and financial services company, has valued MPCL at Rs 2,200 crore.
MPCL, a subsidiary of steel-maker Monnet Ispat and Energy, is currently in the process of developing a 1,050-MW coal-fired power plant in Orissa.
Witnessing a similar trend on the National Stock Exchange, shares of Monnet Ispat closed at Rs 463.40, up 15.04 per cent from the previous close.