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AION-JSW bid for Monnet Ispat gets creditors’ nod; Hinduja Group eyes MauBank

27 February, 2018

Debt-laden Monnet Ispat and Energy Ltd’s creditors have approved an offer made by a consortium of distressed asset fund AION Capital Partners and billionaire Sajjan Jindal-led JSW Steel, The Economic Times reported, citing a person aware of the development.

The offer includes a payment of Rs 2,450 crore to the lenders and equity funding of Rs 1,050 crore, the report said. Monnet has a debt of Rs 10,237 crore, according to the report.

Monnet Ispat is undergoing an insolvency resolution process initiated by the National Company Law Tribunal. It is one of the12 large loan defaulters identified by the Reserve Bank of India in its first list for debt resolution under the Insolvency and Bankruptcy Code.

AION Capital is a joint private equity fund sponsored and run by Apollo Global Management India and ICICI Venture.
AION Capital holds a 70% stake in the consortium and JSW Steel holds the remaining.

Incorporated in 1990, Monnet Ispat makes sponge iron, steel and ferro alloys. It has an integrated steel plant with production capacity of 1.5 million tonnes per annum at Raigarh in Chhattisgarh.

Meanwhile, Bloomberg reported that Hinduja Group is looking to buy a majority stake in Mauritius government-owned MauBank Ltd.

Citing people aware of the development, the report said that Hinduja may buy as much as 75% of the bank’s holding company.

MauBank CEO Sridhar Nagarajan confirmed the talks, Bloomberg said, adding that the due diligence had been completed and the discussion had moved to the next stage.

The report added that the sale would help the government to recover the money it had infused to bail out the lender.

Separately, Mint reported that Ahmedabad-based construction company Montecarlo Ltd is looking to raise up to $100 million through an initial sale of shares.

Citing people aware of the development, the report said the proposed IPO is likely to be a mix of primary and secondary share sale.

The company has given the mandate to Edelweiss Financial Services Ltd to run the sale process, the report added.
Incorporated in 1995, Montecarlo undertakes civil construction projects in various sectors including highway and bridges, irrigation, mining, power, buildings and factories, says a report by credit rating firm India Ratings & Research.

In 2016-17, the company’s consolidated total income stood at Rs 1,965.36 crore and profit after tax was Rs 115.32 crore, according to VCCEdge, the data research platform of VCCircle.

In another report, Mint said that the creditors of auto component maker Amtek Auto Ltd are looking at a proposal received from potential bidders for selling the company along with its group entities such as Castex Technologies and Metalyst Forgings.

Amtek Auto, which was incorporated in 1985, is undergoing a corporate insolvency resolution process initiated by the National Company Law Tribunal. As of 31 March 2017, the company’s consolidated debt stood at Rs 13,772 crore.
Castex Technologies and Metalyst Forgings are also undergoing corporate insolvency resolution process, according to the report.

The committee of creditors had earlier rejected bids by industrial group Liberty House and US-based hedge fund Deccan Value Investors for Amtek Auto, the report said.

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AION-JSW bid for Monnet Ispat gets creditors’ nod; Hinduja Group eyes MauBank

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