Severfield, the Thirsk, North Yorkshire-based international steel group, said on Friday it has secured the right, but not the obligation, to dispose of an interest of up to 24.9% in its Indian joint venture.

Severfield announced in March that chief executive Alan Dunsmore “by mutual consent” agreed to step down after seven years as CEO and would leave Severfield with effect on June 30, 2025.

The company’s shares are down about 60% for the past year, reducing its stock market value to about £95 million.

Severfield’s high-profile achievements in recent years have included its work on Wimbledon No.1 Court, Tottenham Hotspur FC Stadium, First Direct Arena, Outernet London and the Lord’s Cricket Ground Expansion.

The company said on Friday: “Severfield plc … today announces that the Group has entered into a share purchase option agreement with JSW Steel Limited, India’s leading steel manufacturer and its partner in the Indian joint venture, JSSL …

“JSW and the Company, each currently hold a 50 per cent interest in JSSL. The Option Agreement will be granting Severfield the right, but not the obligation, to dispose of an interest of up to 24.9 per cent in JSSL to JSW for up to £20m, exercisable, at its sole discretion, at any time on or before 31 March 2026.

“The Option Agreement reflects the Board’s prudent approach to strategic planning and provides the Group with additional financial flexibility.

“The Board confirms there is no current intention to exercise the Option Agreement and any decision to do so, and to dispose of any of its shareholding in JSSL, would only be made following a rigorous business case assessment.

“JSSL remains a strategically important venture for the Group and the Board continues to believe in its long-term value creation potential within the Indian market and remains committed to its successful partnership with JSW.

“The Group confirms that if the Option Agreement is exercised, a further announcement will be made though RNS.”