Bharat Forge announced that in accordance with the NCLT order dated 26 April 2021 and in terms of the approved Resolution Plan, the Company has fully implemented the Resolution Plan and pursuant to the Resolution Plan has acquired 100% control of Sanghvi Forging and Engineering (SFEL) through its wholly owned subsidiary - BF Industrial Solutions (formerly known as Nouveau Power & Infrastructure) (BFISL).
Pursuant to approved Resolution Plan, among others, the following key actions have been undertaken:
The equity shares of SFEL have been delisted from BSE and National Stock Exchange with effect from 17 June 2021.
SFEL has issued and allotted 50,000 equity shares at face value of Rs. 10 to BFISL and its nominees on a preferential basis through Private Placement.
The entire issued, subscribed and paid-up equity share capital of the SFEL i.e. 1,48,92,267 equity shares of Rs. 10 each fully-paid-up aggregating Rs. 14,89,22,670, excluding the new equity shares allotted to BFISL and its nominees as per (2) above, was cancelled and extinguished.
Subsequent to the aforesaid selective capital reduction of the equity share capital of SFEL, SFEL has become a wholly-owned subsidiary of BFISL and thus a stepdown subsidiary of the Company.
Further, funds amounting to Rs. 15 crore were infused in SFEL by BFISL by way of subscription of 40,00,000 equity shares at face value of Rs. 10 per share and issue of 1,10,000 Zero Coupon Optionally Convertible debentures at face value of Rs. 1,000 per debenture.
SFEL has made all the priority payments viz.
IRP costs, the Workmen and Employee Amount and Other Operational Creditor Amount in terms of the approved Resolution Plan.
In terms of the approved Resolution Plan, the secured Financial Creditors has been paid an aggregate amount of Rs. 75 crore by BFISL for the assignment of existing financial debt of SFEL. Upon completion of the all the above steps of the approved Resolution Plan, the Company has acquired 100% control over SFEL.
Powered by Capital Market - Live News
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
Dear Reader,
Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.
As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.
Support quality journalism and subscribe to Business Standard.
Digital Editor
RECOMMENDED FOR YOU