What’s new

• Mukand signed a term sheet to sell 8.78 acres at Kalwa to AGP DC Infra for about ₹506 crore.
• An advance of ₹10 crore has been received; the deal is conditional on government approvals and purchaser due diligence.
• The sale is expected to raise cash from non-core assets without affecting operations.

Why it matters

At roughly a quarter of Mukand's market cap, the cash could materially reduce its debt-equity ratio of 1.64. But the term sheet is non-binding until conditions are met, so execution risk tempers the upside.

What we’re watching

• Whether Mukand clears the Maharashtra government, Thane collector, and gram panchayat approvals.
• Completion of joint survey and sub-division order.
• Purchaser's due diligence outcome and final sale agreement.

The full read

Mukand Ltd has taken a tangible step toward monetizing non-core real estate. The term sheet with AGP DC Infra for 8.78 acres in Kalwa values the land at ₹55 crore per acre, producing a total consideration of about ₹506 crore — roughly 25.6% of Mukand's market cap. An advance of ₹10 crore is already in hand. For a highly leveraged steel company with a debt-equity ratio of 1.64, that cash could materially improve its balance sheet if the deal closes. But the conditions are many: approvals from the Maharashtra government, the Thane collector, the gram panchayat, a joint survey, sub-division order, and the buyer’s due diligence. At this stage, it's a promising agreement with execution risk. Mukand says operations won't be affected, and the buyer is unrelated.

Primary source: BSE · NSE