Net4India acquired by consortium led by Open Platforms for Rs 196 crore
India’s largest website domain company – Net4India – has been acquired by a consortium of Open Platforms Private Limited, Sudhanshu Rawat and Dalip Kumar Kewalramani after the Rs 196-crore resolution plan submitted by the acquirer has been approved by the NCLT.
The New Delhi Bench of the NCLT approved the resolution plan submitted by the consortium through an order dated 18 August 2023. The resolution plan was earlier approved by the committee of creditors by 77.87% vote share.
As per the resolution plan, secured financial creditors receives Rs 184.5 crore against their admitted claims of Rs 235 crore. The payment comprises Rs 14.5 crore from sale of assets of Net4India in Noida and Chennai, 15% equity shareholding worth Rs 150 crore to Edelweiss ARC in the restructured equity of the company and Rs 20 crore worth of equity shareholding equivalent to 2% stake to State Bank of India.
Unsecured financial creditors receive Rs 11.6 crore against their total admitted claims of Rs 172 crore. Operational creditors receive Rs 20 lakh against their total claims of Rs 23 crore. The plan provides for payment of Rs. 50 lakh as CIRP costs in priority to other payments.
The liquidation value of Net4India arrived at was Rs 11 crore while the fair value arrived was Rs 17.81 crore.
New Delhi-based Net4India was dragged to insolvency court by Edelweiss ARC in 2019 after the former failed to make a payment of Rs 194 crore.
The default pertains to loan taken by Net4India from SBI in 2002, 2003, 2005 and 2012. The State Bank of India declared the loan account as non-performing assets (NPAs) in September 2013. In 2014, SBI transferred the loan account to Edelweiss ARC.
Net4India Ltd was the largest domain registrar in India accredited with Internet Corporation for Assigned Names and Numbers (ICANN). After Net4India suspended operations, ICANN appointed our partner registrar PublicDomainRegistry to take over domain names previously registered with Net4India Ltd.
Also See: NCLT approves Ramkrishna Forgings Rs 125-cr resolution plan for JMT Auto
