The Board of Directors of Amreli Steels Limited, in the board meeting held on 17 November 2017, considered and approved participation in an investment opportunity in Electrical Transmission Business through a Joint Venture with a Chinese Company – Qingdao Huijintong Power Equipment Company Limited (HJT).
The company is listed at Shanghai Stock Exchange with its registered office in Ducon Industrial Park, Jiaozhu, Qingdao, Shangdong, China and principally engaged in research, design, manufacture and distribution of transmission line within and outside China.
Both parties have agreed to consider establishing a Joint Venture Company which will be engaged in production and sale of electrical transmission towers and metal structure products.
Amreli Steels Ltd will have a 65% equity stake in the joint venture company which will translate into an investment amount of Rs. 1,040 million (1.04 Billion) approximately. The investment is subject to obtaining necessary corporate and regulatory approvals.
Resultantly, Amreli Steels Limited’s script was trading at Rs. 99.03, gaining Rs. 1.33 or +1.36% with a turnover of 865,000 shares.