Comments
Gainwell Group on Wednesday announced acquisition of Kolkata-based TIL Ltd, an infrastructure equipment manufacturer.
TIL, run by Sumit Mazumdar and family, is an 80-year-old company which has been listed on BSE since 1955.
Announcing the acquisition, Gainwell Group promoter Sunil Kumar Chaturvedi told reporters the acquisition of TIL was made through Indocrest Defence Solutions (IDSPL), a group entity, through a special dispensation of RBI and Sebi. IDSPL has infused ₹120 crore into TIL including ₹70 crore for subscribing to the preferential issue of shares of the company.
Following the preferential issue, Gainwell group’s holding in the Kolkata-based company will be 43 per cent while that of Sumit Mazumdar and family would go down to 32 per cent from the current level of 56 per cent. Chaturvedi will also be appointed as chairman and MD of TIL Ltd.
TIL would be the first listed entity of the Gainwell Group. The company will be commencing the process of an one time settlement (OTS) of ₹144 crore with its lenders. Out of ₹144 crore, around ₹102 crore would be the cash settlement with the lenders.
“We will bring in new generation of products with significant level of digitisation across the board as well as a new range of customer support options to further deepen our competitive edge,” Chaturvedi said.
TIL’s outgoing Chairman and Managing Director Sumit Mazumder said, “This strategic measure will ensure seamless continuation of TIL’s legacy, growth and expansion benefitting our employees and all stakeholders. TIL under Gainwell’s management will be strongly positioned to continue building on top of its eight decades of legacy, ensuring revival in the business performance and expansion that will benefit all stakeholders.”
Gainwell group had acquired the caterpillar dealership business of TIL in 2016.
On Wednesday, TIL Ltd scrip ended the day at 460.50 apiece on BSE, up 4.99 per cent from the previous close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.