Kolkata: Visa Steel Ltd has signed an agreement with Suncoke Energy Inc of the US to sell 49% in a coke making facility in Orissa for Rs 368 crore.
The joint venture would be formed in the first quarter of 2013-14 subject to approvals by banks and Visa Steel’s shareholders, Visa Steel announced in a regulatory filing on Tuesday.
The Kolkata headquartered steel maker had entered into a corporate debt restructuring programme with its lenders in September.
Visa Steel’s scrip gained 10.49% in the Bombay Stock Exchange on Tuesday to Rs 52.65 while the benchmark Sensex index remained flat at 18,329.31.
Visa Steel and Suncoke, the largest coke producer in North and South America, will together invest Rs 25 crore in the joint venture through issue of new shares, Vishal Agarwal, managing director of Visa Steel Ltd, said.
The coke oven plant in Kalinganagar with a capacity of producing 400,000 metric ton coke a year and having a steam generation unit was hived off by Visa recently into a subsidiary called Visa Coke Ltd.
“The new company will concentrate on expanding the production capacity of the plant to meet increasing coke demand in India,” Agarwal said.