Sajjan Jindal-led JSW Steel has received the NCLT nod to acquire National Steel & Agro Industries for ₹425 crore.
JM Asset Reconstruction Company was the company’s sole lender. The resolution professional has admitted ₹2,023 crore claims, of which JM ARC was the sole secured lender with a claim of ₹1,686 crore.
The ARC acquired National Steel and Agro’s loans from 70 per cent of lenders by value in April 2021 in an uncontested Swiss auction. Subsequently, it acquired the balance of the loans in phases.
The National Company Law Tribunal (NCLT) admitted National Steel and Agro for insolvency proceedings on April 11, following a petition filed by JM ARC.
Promoted by Santosh Shahra, National Steel and Agro is engaged in making steel and exporting agricultural products such as rice, wheat, and soyabean. Its steel plant, located in Madhya Pradesh, has an installed capacity of about 330,000 tonnes per annum of galvanised steel.
In the past, JSW Steel Coated Products had acquired Asian Colour Coated Ispat for ₹1,550 crore, while JSW Steel acquired Bhushan Power and Steel for ₹19,350 crore. It also acquired Vardhman Steel and Monnet Ispat through the insolvency proceedings.