Kamdhenu Limited, a player in the steel industry, announced plans to acquire a 7.79 per cent stake in Maa Kudargarhi Power and Ispat Private Limited (MKPIPL), one of its franchisee units. The acquisition, approved by Kamdhenu’s loan and investment committee, involves purchasing 1.8 lakh equity shares for ₹11.72 crore, at ₹651 each.
The shares of Kamdhenu Limited were trading at ₹587.25, down by ₹21.90 or 3.6 per cent, on the NSE at 11.57 am.
MKPIPL, incorporated in January 2020, entered into a franchisee agreement with Kamdhenu in August 2024 to manufacture branded billets under the KAMDHENU brand. This marks India’s first agreement for domestic production of branded billets for steel manufacturing.
The acquisition aligns with Kamdhenu’s effort to remodel its franchisee business model, as outlined in the company’s January 2024 extraordinary general meeting notice. The transaction is expected to be completed by September 30, 2024, and does not require regulatory approvals.
MKPIPL reported a turnover of ₹649.68 crore and a profit after tax of ₹4.49 crore for the financial year ended March 31, 2024. The company specializes in manufacturing iron and steel products, including billets, TMT bars, and rods.