JSW Ispat Special Steel hives off Raipur plant, other assets to arm via slump sale

JSW Ispat Special Steel, a JV between private equity AION & JSW Steel, on Wednesday said it has hived off its Raipur, Chhattisgarh plant along with certain other assets to its wholly-owned subsidiary via a slump sale of around Rs 450 crore. JSW Ispat Special Products Limited (formerly known as Monnet Ispat and Energy Ltd) has manufacturing facilities at Raigarh and Raipur.

"The company...is proposing to transfer the Specified Undertaking (defined below), on a going concern basis, by way of a slump sale through a scheme of arrangement under the Companies Act, 2013, to Mivaan Steels Limited, upon it becoming a wholly owned subsidiary of the company, subject to necessary approvals and terms of the Scheme," the company said in a filing to BSE. The board of directors of the company has approved "acquisition of 100 per cent of the equity share capital of Mivaan Steels Limited (MSL) to make it a wholly owned subsidiary of the company." The board has given its go-ahead to "the draft scheme of arrangement...for the transfer of a specified undertaking of the company...to Mivaan Steels Limited, upon it becoming a wholly owned subsidiary of the company, by way of slump sale (Scheme), subject to the terms of the Scheme." The proposed Scheme is subject to necessary approvals by the Stock Exchanges, Securities and Exchange Board of India, shareholders and creditors of the companies, as applicable, and the Jurisdictional Bench of National Company Law Tribunal (NCLT), and other approvals and consents as may be required and as set out in the proposed Scheme.

The manufacturing facilities at Raipur comprises of a sponge iron manufacturing plant with a capacity of 0.3 MTPA, ferro alloy plant and steel manufacturing plant with a capacity of 0.25 MTPA. The profile of the products produced at the manufacturing facilities at Raipur pertain to the commodity grade market that caters to the structural and construction sectors with comparatively lower volume of production and serving customers predominantly around its operating area.