A consortium of Ahmedabad-based GSEC Limited and its promoter Rakesh Shah have emerged as the winning bidder for Diamond Power Infrastructure Limited that is undergoing a debt resolution process under the insolvency and bankruptcy code (IBC) framework, according to stock exchange disclosures.
The company had failed to find a buyer when the lenders initially attempted to sell it. After the failure in the first attempt, the lenders had resolved to liquidate the company as no resolution plan was received by them. However, the national company law appellate tribunal (NCLAT) ruled that the meetings during which the lenders had taken a decision to send the company to liquidation should be reconvened.
EoIs were invited for a second time for the financially stressed engineering, procurement, and construction company that was admitted for bankruptcy proceedings by the national company law tribunal (NCLT) three years ago.
Prashant Jain was appointed as the new resolution professional of the company.
Bank of India leads the consortium of lenders that have loaned around Rs. 2300 crore to the company.
Diamond Power Infrastructure is a vertically integrated power infrastructure provider with a presence across cables, conductors, transmission towers, and power transmission and distribution segments. It has installed capacity to manufacture cables up to 50,000 kilometers in length and a conductor manufacturing capacity of 50,500 metric tonnes. The company is also engaged in the manufacturing and erection of transmission line towers and parts on a turnkey basis.
It has a manufacturing unit located at Vadodara in Gujarat. However, the unit has not been operational since 2018. The company is promoted by the Bhatnagar family. The promoters have been under investigation by government authorities in a bank fraud case. The enforcement directorate has attached assets of the company in one of the cases for which litigation is ongoing at the Supreme Court of India.
