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Rs 0.098495 is the new Share Price for Delisting of the Steelmaker offered by new Owners

Rs 0.098495 is the new Share Price for Delisting of the Steelmaker offered by new Owners

As per our reports, in a cash bargain, Sanjeev Gupta which claims Liberty House, has acquired bankrupt companies Adhunik Metaliks and Zion Steel for ?425 crores under the Insolvency and Bankruptcy Code. Liberty House neglected to finish Adhunik's acquisition in its first endeavor. It was given another opportunity by the National Company Law Appellate Tribunal, to assume control over the bankrupt steel mill. Adhunik and Zion had a total outstanding debt of over ?5,000 crores. Sanjeev Gupta-owned Liberty House, which acquired the company by means of the insolvency process, is offering Re 0.098495 per share for delisting the stock.

This implies a discount of around 80 percent against the current price of Re 0.49. It ought to be noticed that trading in the stock has been suspended for procedural reasons since November last year, and this might be maybe the main route of recovering some value for shareholders. Liberty Group in its proposal for delisting said the price it is offering is higher than the liquidation value decided under the Insolvency Code.

Altogether, it will pay Rs 60 lakh for 6,09,16,798 shares to the shareholders. No payment is to be made to promoter(s) or other existing shareholders of Liberty House as per the terms & conditions set out in the approved resolution plan of the company. Retail or non-institutional investors hold around 47 percent of the shares in the company. Total public shareholding is Rs 49.33 percent, according to the March quarter shareholding data discharged by the company. Adhunik is an integrated steel plant situated in Chadrihariharpur close to Rourkela in Odisha. It has blast furnace and electric arc furnace steel-making capability with an annual limit of 0.5 million tons, other than a 34MW captive power plant.


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