Moneycontrol Bureau
Lots of buying orders for shares of PSL Limited were pending on Wednesday as the stock is locked at 10 percent upper circuit after the pipe manufacturer sold its two subsidiaries in US via bankruptcy proceedings.
Its two subsidiaries PSL USA Inc and PSL North America LLC, on June 30 (2014), had filed Chapter 11 proceeding before the bankruptcy Court of district of Delaware USA after reporting continuous losses.
The United States Bankruptcy court on Tuesday passed an order for authorizing and approving the sale of substantially all of PSL North America LLC's assets to Jindal Tubular USA LLC in accordance with the terms of the Asset Purchase Agreement, free and clear of all liens, claims, encumbrances and other interest.
The court also approved the assumption and assignment of contracts, entering into ancillary agreement, and granting related relief.
"The sale of the aforesaid subsidiaries of PSL Limited through bankruptcy proceeding is now complete," said the India's largest manufacturer of HSAW pipes in its filing.
At 11:32 hours IST, the stock was quoting at Rs 19.50, up Rs 1.75, or 9.86 percent on the BSE. There were pending buy orders of 74,000 shares, with no sellers available.
Posted by Sunil Shankar Matkar
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