Usha Martin Exits Airline JV

New Delhi: Steel and wire rope manufacturer Usha Martin on Monday said it will divest its entire stake in joint venture (JV) Dove Airlines for Rs 8.10 crore.

"The company has agreed to divest its entire stake of 50 per cent held in Dove Airlines Pvt Ltd (DAPL), a JV company at a consideration of Rs 8,10,50,000 subject to certain adjustments," the firm said in a filing to the BSE.

The necessary share purchase agreement for the divestment has been signed by the company on November 9, 2015 and the transaction will be completed upon receipt of approval from aviation regulator DGCA (Directorate General of Civil Aviation), Government of India, it added.

"Subsequent to such divestment, DAPL shall cease to be a JV of the company," it said.

For the second quarter ended September 30, 2015, the firm reported consolidated net sales of Rs 1012.99 crore and a net loss of Rs 99.33 crore.

On the results, Usha Martin said the business continued to remain under severe pressure due to cheap imports and depressed demand.

Shares in Usha Martin, on Monday, ended 0.68 per cent lower at Rs 14.50 apiece on the BSE, whose benchmark Sensex index finished down 0.55 per cent.