Prakash Steelage said Monday the company has transferred its seamless stainless steel tubes and pipes business, to Tubacex Prakash India, a joint venture between the company and Tubacex S.A. Spain. The company has received a consideration of Rs 2.09 billion. A major part of consideration is being utilized to repay the bank debts, the company said.

The joint venture company has issued equity shares to both Tubacex S.A and the company. The company now holds 32.47% of the equity shares and the balance shareholding of 67.53% is held by Tubacex S.A in the joint venture company. Consequently, the joint venture company is no longer a subsidiary of the company, it said.

Further the company said it will continue to own and operate all its other businesses, including the manufacturing of stainless steel welded tubes and pipes and trading business.

Shares of the company gained Rs 10.9, or 9.08%, to trade at Rs 131. The total volume of shares traded was 2,993 at the BSE (10.26 a.m., Tuesday).