JSW Ispat Special Products hives off Raipur plant
JSW Ispat Special Products (formerly known as Monnet Ispat and Energy Limited), a JV between Private Equity firm AION & JSW Steel has hived off its Raipur (Chhattisgarh) plant along with certain other assets to its wholly-owned subsidiary via a slump sale of Rs 450 crore subject to approval by NCLT, the company informed in an exchange filing.
The Company is proposing to transfer the Raipur plant on a going concern basis, by way of a slump sale through a scheme of arrangement under the Companies Act, 2013 to Mivaan Steels Limited, upon it becoming a wholly owned subsidiary of the Company, subject to necessary approvals and terms of the Scheme.
JSW Ispat Special Products Limited, which was acquired by JSW Steel and AION through an insolvency and bankruptcy process, has acquired 100% of the equity share capital of Mivaan Steels Limited to make it a wholly owned subsidiary of the company.
The businesses to be transferred to Mivaan Steels includethe manufacturing facilities at Raipur and mining facilities at Kanker and associated coal washery operations at Patherdih and certain other assets and properties.
The manufacturing facilities at Raipur comprises of a sponge iron manufacturing plant with a capacity of 0.3 MTPA, ferro alloy plant and steel manufacturing plant with a capacity of 0.25 MTPA.
The profile of the products produced at the manufacturing facilities at Raipur pertain to the commodity grade market that caters to the structural and construction sectors with comparatively lower volume of production and serving customers predominantly around its operating area whereas, the focus of the other facility of the Company at Raigarh is on special steel products catering to HT grades, IBR grades, RDSO grades, automotive, high manganese grades, cold rolling grades and API grades with comparatively higher volume of production, serving customers in the exports and domestic markets covering Northern, Eastern and parts of Western region of India.
“With the transfer of the Specified Undertaking through the Proposed Transaction, the Company will be able to focus on special steel products and explore and develop markets for its special steel products,” the company said in a statement.
The transfer is expected to create and enhance stakeholders’ value by unlocking the intrinsic value and growth potential for the respective businesses of the Transferor Company and Transferee Company.
Also read: IBC acquisitions contribute Rs 323 crore to JSW Steel’s Q1FY22 profits
