Anil Ambani-owned Reliance Infrastructure (RInfra) has sold its cement business to Birla Corporation for Rs 4,800 crore.
“RInfra today announced the signing of share purchase agreement with Birla Corporation, the flagship company of the M P Birla Group, in relation to 100 per cent sale of its subsidiary RCCPL,” the Reliance Group company said in a statement. “The deal values cement business at Rs 4,800 crore at $ 140/tonne,” it said adding that the proceeds will be utilised for debt reduction.
RCCPL has an integrated cement capacity of 5.08 million tonne per annum (MTPA) at Maihar, Madhya Pradesh and Kundanganj, Uttar Pradesh and a grinding unit of 0.5 Mtpa at Butibori, Maharashtra.
Under this transaction Birla Corporation will acquire the 100 per cent shareholding of RInfra in RCCPL. The transaction is subject to approval of the Competition Commission of India and other applicable regulatory approvals, the company said.
Tata Steel posts Rs 2,127 cr loss in Q3
Tata Steel has reported a consolidated net loss of Rs 2,127.23 crore for the quarter ended December 2015 as against a net profit of Rs 157.11 crore in the year-ago period, hit by subdued demand in India as well as higher regulatory costs and a strong British pound.
Total consolidated income of the steel maker declined by 17 per cent to Rs 28,039 crore in the October-December quarter of this fiscal, from Rs 33,633 crore during the same quarter in 2014-15, Tata Steel said. Its total expenses more than doubled to Rs 1,224.90 crore from Rs 578 crore during the quarter under review.
Steel deliveries rose marginally to 6.37 million tonnes (MT) in the December quarter in 2015-16. Oversupply in global steel markets coupled with relative stability of rupee versus dollar as compared to other and currencies has made India a favoured import destination.