Ten promoter group companies of JSW Ispat Steel have sold their 6.38 per cent stake in the company for Rs 174.47 crore.
According to the filings made by the 10 companies to the BSE, over 16 crore shares amounting to 6.38 per cent JSW Ispat Steel were sold through both off and on market transactions for Rs 174.47 crore.
The promoter group companies which have reduced their stake are Ispat Steel Holdings Ltd, Kartik Credit Pvt Ltd, Navoday Consultants Ltd, Navoday Highrise Pvt Ltd, Navoday Niketan Pvt Ltd, Ushaditya Trading Pvt Ltd, Goldline Tracom Pvt Lt, Mita Holdings Pvt Ltd, Navadisha Real Estate Pvt Ltd and Denro Holdings Pvt Ltd.
All these firms belong to Pramod and Vinod Mittal or their families, which held less than 20 per cent stake in JSW Ispat before these transactions.
The share sale took place ahead of a meeting of company shareholders, which is scheduled for January 30,, to approve JSW Ispat's merger with JSW Steel.
JSW Ispat has two major promoters -- JSW Steel with 46.75 per cent stake and firms belonging to Pramod and Vinod Mittal or their families.
Pramod and Vinod Mittal --brothers of the steel czar L N Mittal-- used to be the original promoters of JSW Ispat Steel (then known as Ispat Industries). However, due to mounting losses, they had sold 41 per cent stake in the company to JSW Steel in December, 2010.
Subsequently, JSW Steel increased its stake to 46.75 per cent and renamed the company to JSW Ispat.
In September last year, JSW Ispat announced merger of itself with JSW Steel. The merger would make JSW Steel the second largest domestic steel producer with an annual production capacity of 14.3 million tonnes.
Shares of JSW Ispat closed today at Rs 11.11 apiece on the BSE, down 0.36 per cent from its last close.