Maharashtra Seamless To Acquire USTPL Through NCLT
Maharashtra Seamless Limited has acquired United Seamless Tabulaar Private Limited (USTPL) through NCLT. Detailed information is annexed below:
1. The United Seamless Tabulaar Private Limited was not a related party to the Company and the Company's Promoter/ Promoter Group/Group Companies did not own any shares or had any other interest in the target entity.
2. USTPL involves Manufacturing of Seamless Pipes and tubes.
3. The acquisition provides a growth opportunity to the Company to expand its existing line of business of Seamless Pipes and Tubes.
4. Payment of Rs. 477 crore to towards settlement of financial creditors, corporate insolvency resolution process cost, admitted operational creditors, workmen and employee dues, etc
5. The company acquired 100% comprising of 133,907,903 Equity shares of Rs. 10/- each amounting to Rs. 133.91 crore. Subsequently, the existing share capital of the Company will be reduced to Rs. 13.391 crore in terms of NCL T Order by writing off 90% of the face value and thereafter consolidating of 10 Equity Shares of Rs. 1 each into one Equity share of Rs. 10/- each.
6. USTPL was incorporated on 8th September 1997. USTPL was admitted under Corporate Insolvency Resolution process on 20th July, 2017 as per the Insolvency and Bankruptcy Code, 2016. NCL T vide its Order dated 27th November 2018 has approved the Resolution Plan submitted by the Company for acquiring the controlling stake of USTPL.