Saturday, Apr 20, 2024 | Last Update : 10:10 PM IST
Shakambhari Ispat takes over SPS Steels
SIPL had earlier been headed by Vipin Vora of SPS Group, which once claimed to have a turnover of Rs 5,000 crore.
Kolkata: Even as the second highest bidder approached the National Company Law Appellate Tribunal (NCLAT) contesting the resolution, Kolkata-headquartered Shakambhari Ispat and Power Ltd (SIPL) on Tuesday announced taking control of SPS Steels Rolling Mills Ltd and its brand 'Elegant Steel', after the NCLT approved a resolution plan worth Rs 270 crore. The new promoters also lined up an investment of Rs 700 crore, including Rs 550 crore in a two-million-tonne pellet plant, over the next two to three years, top company officials said.
“We have taken control of SPS management and assets, including the brand, from April 12, after we completed the required payment. Our resolution plan was worth Rs 270 crore, which was approved by NCLT Kolkata," said Deepak K Agarwal, Chairman and Managing Director of Shakambhari Group.
Interestingly, SIPL had earlier been headed by Vipin Vora of SPS Group, which once claimed to have a turnover of Rs 5,000 crore. The erstwhile promoters also faced a CBI probe for an alleged bank fraud case. SPS was referred to NCLT nearly 18 months ago following continuous defaults.
Shakambhari Group had been attracted by the brand that was well-established and had a decent market share in TMT bars and structurals retailing segment, said Agarwal. The new owners will also pump close to Rs 150 crore in modernisation of the plant and setting up a captive power plant.
If things move the way it has been envisaged, SIPL would expand ‘Elegant Steel’ brand beyond eastern India and the company is open to more acquisitions, going forward.
Ranjan Barma, advisor, SIPL, said. "We are keen on taking the brand to the northern Indian markets. We are also evaluating various Sarfesi and insolvency assets for more such acquisitions close to our potential markets. We have earmarked nearly Rs 300 crore for the purpose."
Shakambhari Group, which at present, has a turnover of Rs 1,800 crore, is looking at a turnover of nearly Rs 3,000 crore following the acquisition of SPS Steel, which is expected to generate a topline of Rs 1,000 crore—-up from Rs 407 crore now—-this fiscal, Agarwal said.
