Vedanta has received National Company Law Tribunal’s (NCLT’s) approval to acquire Electrosteel Steels (Electrosteel). NCLT, Kolkata Bench, has approved the terms of the Resolution Plan submitted by the company, pursuant to a Corporate Insolvency Resolution process implemented by way of the Insolvency and Bankruptcy Code 2016, and the terms of the Resolution Plan are now binding.
Pursuant to the Resolution Plan, a wholly-owned subsidiary of the company, will subscribe for the share capital of Electrosteel for an aggregate amount of Rs 1,805 crore ($275.7 million) and provide additional funds aggregating of Rs 3,515 crore ($536.9 million) by way of debt. Upon implementation of the Resolution Plan, the company will hold approximately 90% of the paid up share capital of Electrosteel. The remaining 10% of Electrosteel’s share capital will be held by Electrosteel’s existing shareholders and the financial creditors who receive shares in exchange for the debt owed to them. The funds received by Electrosteel as debt and equity will be used to fully settle the debts owed to the existing financial creditors of Electrosteel, by payment of Rs 5,320 crore ($812.6 million).
Vedanta is a diversified natural resources company, whose business primarily involves producing oil and gas, zinc- lead-silver, copper, iron ore, aluminium and commercial power.
| Company Name | CMP |
|---|---|
| Hindalco Industries | 963.75 |
| Vedanta | 284.00 |
| Hindustan Zinc | 525.85 |
| Jain Resource Recycl | 344.00 |
| CMR Green Tech | 254.90 |
| View more.. | |
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