Kamachi Industries acquired by Jaicorp for Rs 487 crore
Chennai-based Kamachi Industries Limited, an integrated steel company, has been acquired by Jaicorp’s vice chairman, Virendra Jain along with his son, Ankit Jain for Rs 487 crore through liquidation process overseen by liquidator Mahalingam Suresh Kumar.
The bid of Rs 487 crore was made under a National Company Law Tribunal (NCLT) monitored process initiated by State Bank of India in February 2020. This transaction encompasses all movable and immovable assets along with lease hold rights, but excludes the liquidation bank account of Kamachi Industries Limited.
The company owed Rs 1,500 crore to five financial creditors. During the resolution process of Kamachi Industries, three resolution applicants had submitted bids. Only two resolution plans were put to vote and both of them were rejected by the CoC by 100% vote share. Later the CoC agreed to send the company for liquidation. The NCLT ordered liquidation of the company in December 2022.
In a press release issued on Saturday, Kamachi Industries has said that the strategic acquisition ensures the continuation of the company’s operations, thereby preserving its value and paving the way for future growth.
With the completion of the balance payment of Rs 365 crore, Virendra Jain and Ankit Jain have gained full management control of the unit. Emerging as the highest bidders in the liquidation process, they have demonstrated their commitment to maintaining seamless operations of Kamachi Industries Limited.
This acquisition marks a pivotal moment in resolving the insolvency proceedings of Kamachi Industries Limited and secures its future growth, heralding a new chapter of long-term stability and development, said the press statement by the Chennai-based company.
Kamachi Industries is part of the Kamachi Group and consists of a widespread Integrated Steel Complex in a Greenfield with an annual integrated capacity to produce more than 8 lakh metric ton of steel annually. The company is self-sufficient in its energy requirements too with 70 mwph of installed capacity and another 110mw under proposal. The plant consists of five divisions.
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