Jindal Stainless Limited (JSL) said its board of directors has approved the acquisition of Rabirun Vinimay Private Ltd which is under liquidation. The cost of the acquisition is Rs 96 crore, JSL said in a regulatory filing.
“The Board of Directors accorded its consent for acquisition of 100 per cent stake in Rabirun Vinimay Private Limited (RVPL), a company under liquidation, on a going concern basis, in terms of the applicable provisions of Insolvency and Bankruptcy Code, 2016,” it said.
JSL said RVPL has potential downstream cold-rolling manufacturing capacity of 250 KTPA (kilo tonne per annum) for wider and thinner segment besides having a capacity of 50 KTPA for pipe and tube segment. Its plant is located at Vidyasagar Industrial Park, Kharagpur, West Bengal over 60 acres of land area. The plant is currently shut down.
“The proposed acquisition would complement the management’s objective of increasing the cold-rolling capabilities of going thinner with wider width to cater auto, large household appliances, lift and elevators, surface critical applications,” JSL said.
The acquisition will be completed upon receipt of sale certificate from the official liquidator of the insolvent company, which is expected within the current financial year.