Stocks

Adhunik Metaliks’ new owner offers ₹0.09849500 a share to delist

KS Badri Narayanan | Updated on June 23, 2020 Published on June 23, 2020

Liberty House gets final nod from NCLAT

Shareholders of Adhunik Metaliks, who were hoping for a better deal from the prospective buyer, have to reconcile themselves to the fact that their holding will fetch just ₹0.09849500 a share.

According to a plan approved by the NCLT through the corporate insolvency resolution process, and the final direction given by the NCLAT, the acquirer, LHG Metal Two Private Limited, has offered ₹0.09849500 a share to the public shareholders of Adhunik Metaliks. At this price, LHG will spend ₹60 lakh for acquisition of shares. The stock, which was suspended due to the CIRP, last traded at ₹0.49 on the BSE on November 29, 2019.

The delisting offer will open on June 27 and close on July 11. The record date has been fixed as June 18 to identify eligible shareholders to participate in the delisting offer.

State Bank of India had moved the National Company Law Tribunal, Kolkata Bench, in 2017 following the default by the company.

Earlier, after hard negotiations, Liberty House finally made a successful bid to the debt-laden Adhunik Metaliks and its associate company, Zion Steel, for ₹425 crore in an all-cash deal under the corporate insolvency resolution process. Liberty House is owned by India-born British businessman Sanjeev Gupta and his family through the GFG Alliance.

According to the latest shareholding pattern (March 2020), promoters hold a 50.67 per cent stake. Among the public, LIC of India Profit Plus Growth Fund holds 2.12 per cent. While about 21,200 shareholders hold 14.49 per cent and 225 HNIs own 12.30 per cent in the company.

The beleagured NBFC IL&FS Financial Services holds a 10.68 per cent (about 1.32 lakh shares) stake in the company.

For FY17-18, the company had posted a huge loss of ₹905.15 crore on revenues of ₹740.12 crore.

Published on June 23, 2020
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