Usha Martin Ltd (UML) on Wednesday said it will seek shareholders' approval on November 10 with regard to the sale of its steel business to Tata Steel.

The approval will be sought through special business in the extraordinary general meeting next month.

"An extraordinary general meeting of the members of UML will be held... on November 10, 2018 to transact the...sale of the steel business undertaking of the company to Tata Steel as a going concern on a slump sale basis," UML said in a notice to the shareholders.

Tata Steel earlier said it has executed definitive agreements for the acquisition of UML's steel business for Rs 4,300-4,700 crore through a slump sale on a going concern basis.

As per UML, the sale of its steel business to Tata Steel will help the company to significantly reduce its debt.

UML's steel business comprises the specialised 1 million tonne per annum (MTPA) alloy based manufacturing capacity in long products segment based in Jamshedpur, a producing iron-ore mine, a coal mine under development and captive power plants, Tata Steel said.

It is amongst the largest wire rope manufacturers in the world and a leading speciality steel producer in India.

First Published:Oct 10, 2018 5:56 PM IST