India: JSW Steel Announces Acquisition of Vardhaman Industries Ltd

JSW Steel made an official announcement yesterday regarding acquisition of debt-ridden Vardhaman Industries Ltd. (VIL) by infusing INR 63.50 crore to it.

The acquisition has been done as per the resolution plan approved by the lenders of VIL, the National Company Law Tribunal (NCLT) and National Company Law Appellate Tribunal, under the Insolvency and Bankruptcy code, 2016 ("IBC"), the company said.

As a result of this, JSW Steel now holds 100% of equity shares and the compulsorily convertible debentures issued by VIL and thus VIL has become wholly owned subsidiary of JSW Steel Ltd.

Vardhaman Industries Limited is a manufacturer, wholesale supplier and exporter of colour coated coils and sheets with a monthly target production capacity of 2,500-3,000 MT with manufacturing facility located at Rajpura, Patiala (Punjab) The company's turnover in FY'18-19 was INR 74.59 crore.