Mumbai, Jun 10 (UNI) Grasim Industries Ltd, a flagship company of the Aditya Birla Group, today announced to transfer its sponge iron business to Welspun Power and Steel Ltd for a purchage consideration of Rs 1,030 crore.
The company would hive off its sponge iron business, under the name of Vikram Ispat, by way of a slump sale in accordance of court approval of arrangement, the company said in a release today.
Vikram Ispat will be trasferred into a new special purpose vehicle (SPV), to be formed as a subsidiary company of Grasim, which would be funded by the Welspun through equity investment and induction of debt to acquire the SPV and sponge iron business, the company said.
Further, SPV will use the funds inducted by Welspun to make the paymet of consideration to Grasim. The transaction is expected to be completed within the next 6 months, it added.
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