The National Company Law Tribunal has approved the ₹4,050-crore bid by AM Mining India to acquire the stressed Uttam Galva Steel

In October 2020, NCLT admitted an insolvency petition filed by State Bank of India against Uttam Galva. In June 2021, the lenders unanimously approved the resolution plan submitted by ṭLakshmi Mittal-promoted ArcelorMittal Group . Others who had submitted expressions of interest to acquire the company include JSW Steel and Jindal Steel & Power.

The overall claim on Uttam Galva was about ₹20,650 crore, of which almost ₹9,400 crore is owed to financial creditors and ₹11,255 crore to operational creditors.

3rd buy through insolvency process

This is ArcelorMittal’s third acquisition through the insolvency process in India, after Essar Steel and Odisha Slurry Pipeline Infrastructure.

NCLT pronounced the order on Friday, approving the resolution plan submitted by AM Mining India and the copy of the order is yet to be uploaded on NCLT, said Uttam Galva.


Uttam Galva has a cold rolling capacity of 1 mt across two units in Khopoli on the outskirts of Mumbai. It has a galvanizing and annealing capacity of 7.5 lakh tonnes and 1.8 lakh tonnes, besides a colour-coated capacity of 90,000 tonnes.

Being a coastal plant, around half its output is exported to the US, West Asia and Africa, with the former being the largest market. End-users of the steel are auto, construction, white goods and appliances companies.

The company reported a net loss of ₹51 crore in the June quarter, against a loss of ₹75 crore in the same period last year. Its revenue increased to ₹238 crore (from ₹196 crore) in the June quarter.

Clearing company’s loans

Interestingly, in 2018 when ArcelorMittal had bid for Essar Steel, the Supreme Court directed the steel giant to clear all non-performing loans of Uttam Galva in which it held stakes.

Subsequently, ArcelorMittal cleared dues of Uttam Galva Steels amounting to ₹7,469 crore to become its largest creditor. Subsequently, it sold the entire 29 per cent stake back to Uttam Galva’s promoters, the Miglani family’s Sainath Trading Company, to be eligible for the Essar Steel bid.