Ramkrishna Forgings emerges successful bidder for JMT Auto

Ramkrishna Forgings Ltd has emerged as the successful bidder for JMT Auto Ltd, an Amtek Auto group company. The CoC has approved the resolution plan of Ramkrishna Forgings by a vote share of 84.61%.

According to exchange filings, on 19 November, 2022 two compliant Resolution Plans submitted by the two Resolution Applicants were put to e-voting for approval by the CoC members in accordance with Section 30(4) of the Insolvency and Bankruptcy Code, 2016 read with Regulation 39(3) of the CIRP Regulations.

The e-voting on approval of resolution plan was concluded on 16 January 2023 and the resolution plan submitted by Ramkrishna Forgings Limited has been duly approved by 84.61% CoC members under Section 30(4) of the Code as the successful resolution plan, subject to approval of NCLT Delhi

JMT Auto, an auto component manufacturer from Jamshedpur, Jharkhand, has been undergoing corporate insolvency resolution process (CIRP) since February 2022 after an Axis Bank insolvency application filed against JMT Auto was admitted by the NCLT for defaulting on a payment of Rs 60 crore.

The company owed Rs 220 crore to its creditors, out of which Rs 168 crore is owed to financial creditors. Axis Bank has the largest claim of Rs 77 crore, followed by IDBI Bank (Rs 58 crore) and SBI (Rs 26 crore).

JMT Auto is one of the largest auto component manufacturers in the Eastern region of the country and has expertise in the auto sector with proven capabilities in heat treatment & gear manufacturing besides a variety of components for Oil and Gas industry.

Established in 1987, the core competence of the company is high precision Gears and Shafts.

JMT manufactures over 2000 different components which range from Engine components, Gears, Shafts, Pins, Bushes, Idler Bearings, Carrier Housing, Gear Rings, Axles, Synchro Cones, Carriers, Gear Box Assemblies, Seal wear rings, Oil Pump Cover ,Drums Sleeves, Carrier Assemblies, Pipe Assemblies, Flywheel Assemblies, Sear Wear ring, Cone And Cup(Heat Treatment),Bushes, Oil Pump Gear, Seat Valve, Lever Rocker Assembly, Steering Spindle, Assemblies, Engine Gears, Spindles, Drums for light, Medium & Heavy Commercial Vehicles, Tractors and Diesel Engines.

In 2013, controlling shares were acquired by Amtek Auto Limited.

Ramkrishna Forgings is a manufacturer of open and closed die forgings of carbon and alloy steel, micro alloy steel and stainless steel forgings. It is a suppliers to various sectors like Automotive, Railways, Farm Equipment, Bearings, Oil & Gas, Power and Construction, Earth Moving & Mining, both in India & overseas markets. We are also a critical safety item supplier for Screw Coupling, Bolster suspension, Side frame keys and Draw Gear Assembly for Railway Coaches and wagon. We are a preferred supplier to OEM’s like TATA Motors, Ashok Leyland, VE Commercial and Daimler in India and to Volvo, Mack Trucks, Iveco, Ford in the overseas markets. We supply globally to Tier 1 axle manufacturers like Dana, Sisamex, Meritor and American Axles.

Ramkrishna Forgings is a NSE-listed company with Rs 4,300 crore market cap. It has an annual turnover of Rs 2,290 crore in 2021-22, and a profit of over Rs 200 crore.

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